PMT Ltd. Cinemas: To Expand or Not to Expand?

With its 170 cinemas spread across 74 cities in 16 of India's 28 states, PMT Ltd. was the largest theater chain operating in India. PMT wanted to build on its already-strong position in the Indian film industry. It was considering a proposal to grow its footprint in the 12 remaining Indian states by buying cheap property left vacant by the COVID lockdowns. By November 2023, unlike in most other countries, the Indian film industry had largely bounced back from the pandemic-era shutdown; India produced more movies than any other country in the world. Still, admission numbers elsewhere remained well below pre-pandemic levels. PMT management had to decide whether the opportunity presented by these unique circumstances was worth taking despite the unknown fate of the global film industry--and if it was, how the company would finance the investment.