Entrepreneurs
Ashish Hemrajani: Navigating the Curtain Call of India’s Entertainment Giant, BookMyShow
In the unpredictable world of show business, Ashish Hemrajani, the founder and CEO of BookMyShow, has faced both standing ovations and unforeseen plot twists. As the hero of India’s largest movie and event ticketing company, Hemrajani has steered the ship through the highs of record-breaking revenues and the lows of a global pandemic that brought the entertainment industry to a standstill.
The climax came in early March when movie ticket sales reached an all-time high, and BookMyShow was poised for a stellar performance to conclude the fiscal year. With revenues touching Rs 594.19 crore in FY19, the entertainment business was thriving, and Hemrajani was optimistic about the future. However, the anti-climax arrived swiftly as the Covid-19 pandemic prompted a nationwide lockdown in late March. Cinemas closed, events were canceled, and businesses faced an unexpected halt, challenging the very core of BookMyShow’s operations.
Hemrajani, no stranger to adversity, drew from his experience during the dotcom bust in 2001 when he had to make tough decisions to ensure the survival of Big Tree Entertainment, the parent company of BookMyShow. Forced to reduce the headcount by 96 percent, Hemrajani acknowledges the difficulty of such decisions but emphasizes the necessity for the organization’s well-being. Now, two decades later, facing the impact of the pandemic, BookMyShow is once again in the trenches of a battle. The headcount has been cut by 48 percent, reflecting the harsh reality of the prolonged impact on the entertainment industry.
While Hemrajani remains guarded about disclosing specific financials for FY21, the industry’s challenges are evident in the performance of major players like PVR, India’s largest theatre chain. PVR’s total revenue plummeted from Rs 3,452 crore in FY20 to Rs 749 crore in FY21. The multiplex operator faced unprecedented challenges, with Ebitda shrinking from Rs 1,114 crore to Rs 134 crore, and a loss of Rs 748 crore compared to a profit after tax of Rs 27 crore the previous year.
Hemrajani’s pragmatic approach to adversity is evident in BookMyShow’s response to the crisis. Despite the impact on revenues—Rs 701.40 crore in FY20—Hemrajani and his team have demonstrated resilience and adaptability. The company underwent a staggered and partial reopening in FY21, only to face another setback with the second wave of the pandemic. Theatres remain closed, on-ground events are scarce, and movies find their audience on ‘over the top’ (OTT) platforms.
The most significant toll has been on the workforce. BookMyShow’s headcount reduction from 1,450 to 750 reflects the painful decisions companies in the entertainment industry have had to make to survive. Hemrajani’s empathy shines through as he acknowledges the human cost of such measures. The resilience forged in the crucible of past challenges has become the guiding force for Hemrajani and his team during this prolonged period of uncertainty.
Despite the challenges, Hemrajani remains optimistic. He draws parallels between the current scenario and the dotcom bust, emphasizing that resilience and adaptability are key to weathering the storm. While the entertainment industry faces unparalleled challenges, Hemrajani sees hope on the horizon. The past has taught him that uncertainties eventually give way to new opportunities, and BookMyShow, under his leadership, is poised to rise once again.
Ashish Hemrajani’s journey as the founder and CEO of BookMyShow is a testament to his leadership in navigating the turbulent waters of the entertainment industry. His ability to make tough decisions, coupled with a forward-looking vision, positions BookMyShow to emerge stronger from the current challenges. As the curtains rise again on India’s entertainment landscape, Hemrajani remains a stalwart figure, steering his company towards a triumphant comeback.