Indian movie industry, pharma giants may gain from Russian market

The Indian movie industry and pharma giants may gain from the Russian market following the withdrawal of Western firms since the sweeping sanctions were imposed on Russia.

Following the announcement by major Hollywood studios that new releases will be suspended in Russia, Russian cinema networks may turn to Bollywood blockbusters and films from other Asian and Latin American nations, according to the Russian daily Vedomosti.

Foreign films accounted up 75% of the Russian box office in 2021. Going to the movies is one of the most popular leisure activities among Russians. “The challenge is to make it inexpensive and relevant, even with dramatically higher costs for lighting and projector components, which have climbed by around 80% due to the exchange rate,” according to a Moscow-based source who deals with Russian movies.

There will be no increase in the price of cinema tickets, despite the fact that the cost of most products and services has risen. The heads of Russia’s five largest cinema networks – United cinema network Cinema Park and Formula Kino, Premier Hall, Karo and Kinomax – told Vedomosti, the Russian daily newspaper, and Cinema Star, that cinemas will maintain pre-crisis prices not only for movie tickets but also for cinema bar products.

According to the research firm Nevafilm Research, these cinema chains account for 31.5 percent of the film distribution market in terms of movie halls as of January 1, 2022.

Cinema chains will not raise ticket rates and will instead freeze them. However, theatres will continue to play Russian and South Korean films, as well as Bollywood blockbusters.

The joint theatre network Cinema Park and Formula Cinema in Russia saw sold-out houses and new viewers for a special screening of Radhe Shyam, an Indian hit film.

Meanwhile, Indian pharmaceutical companies may replace the Western manufacturers leaving the Russian market, the Russian ambassador to India Denis Alipov as more foreign companies withdraw in the wake of the Ukraine war.

Alipov, the newly-appointed Russian envoy, told the Rossiya 24 broadcaster that India is a “world pharmacy” and leading manufacturer of generic drugs that are not inferior to the original.

“The withdrawal of many Western companies from the Russian market and those niches that have been vacated may actually be occupied by Indian companies in many industries, in particular, in pharmaceuticals," Alipov said, as quoted by Russian media outlet Sputnik.