Now grab home-made food to theaters and enjoy your movie time!

Mumbai, July 16: Gone are the days of grabbing the popcorn and spending lavishly in movie cinemas. In a new welcoming move, the Maharashtra government has announced that their viewers will be free to carry their own eatables inside the multiplex. There would be no difference in the MRP of food products sold outside and inside multiplexes in the state.

Minister of State for Food and Civil Supplies Ravindra Chavan said, “The MRP parity for food items inside and outside the multiplexes would be effective from August 1 and the Home Department of the state government will formulate a policy to act against violators.”

The decision by the state government sent shares of multiplex operators tumbling, with PVR Ltd and INOX Leisure Ltd pitching as much as 14.1% and 14% respectively. The decision will severely hit the business creating an itching situation for the multiplexes as their major share of profit is generated from the sale of food items. With the new GST rates in place, about 30% of the business for multiplex chains comes from the sale of food and beverages.

While moviegoers were thrilled with the news, shares of multiplex companies tanked after the news as about 25-30% of multiplex revenue come from food and beverages.

Food and beverages at high-end cinemas are often priced at a significant premium to their retail price in the market and help bulk up revenues for multiplex operators. For example, any soft drink that is available at Rs 20 in the market is available for Rs 60 in the multiplexes.