INOX & PVR Merger and Updates – The unfortunate situation that caused a halt around the world, caused so many other halts in industries and companies especially the Indian film industry which plays a massive part in the Indian economy. And although the OTT platform came to rescue us and provided the audience with all the regional as well as original content at the best price. But OTT has become a threat to the theatre which is a major source of revenue for films.
Past decades 2010- 2019 is been glorious for the big screens but after 2019 it has been declining rapidly and has taken a back seat, with OTT being in the front. Which has never seen such a boom before. Multiplex is a tough business and has been struggling to generate free cash flows.
Let’s see if this defensive plan of the merging of INOX and PVR will protect the big screens and help them come back to the front row and coexist with the OTT platform.
History Of INOX & PVR Company
INOX movies is an Indian cinema company / Indian movie theatre chain. In 2002 the company commenced its operation and opened its first four-screen multiplex in Pune and Vadodara. After going public in 2006 it gradually through the years, has added its screen all over the country. INOX has won multiple awards like the TAAL multiplexer award (2006), Emerging superbrand of the year (2007), Big cine expo award’s ‘best technology award of the year, and many more.
According to the director of INOX Sidharth Jain, In 2018 the metro INOX multiplex in Mumbai became India’s first cinema to be powered by the solar system. In 2021 the INOX has added electric vehicle charging at its multiplex (Pune).
PVR cinema Priya Village Roadshow is a movie theatre chain in India. The headquarters is located in Gurugram. The cinema was named after Priya Jaisighani and was brought by the PVR chairman Ajay Biliaji’s (Founder of the company) father in 1978. His brother Sanjeev Kumar Bijli is the joint director of PVR. PVR has 15 screens with IMAX, gold glass, a mainstream auditorium, and a playhouse. Customized 3D glasses provide rubber seats and beanbags for a homely feel. It has become the second movie theatre chain in India to introduce 4DX after Cinepolis (a Mexican movie theatre chain).
Insight Into The Mega-Blockbuster Deal
These two mega iconic brands came together and joined their hands on March 27, 2022. This combined entity will be called PVR INOX LIMITED with the branding of existing screens to continuous PVR and INOX respectively.
Currently, PVR is operating 871 screens across 181 properties in 73 cities and INOX is operating 675 screens across 160 properties in 72 cities. And now after the announcement of their merge, PVR INOX LIMITED is operating 1,546 screens across 342 properties in 109 cities which will make it the largest film exhibition in India. Post the merger, the PVR promoters will have a 10.62% stake and the INOX promoter will have a 16.66% stake in the combined entity. And once the merger becomes successful and after due approval, INOX will merge with PVR where INOX will receive 3 shares of PVR and PVR will receive 10 shares of INOX. Together they will have a market share of 42%.
The merged company will have a near 50% share of the total multiplexes in the country after the completion of the deal, followed by Miraj at 5.4 %, Cinepolis at 14%, and the rest at 32.5% said Girish Pai who is head of research.
Pavan Kumar Jain will be appointed as the non-executive chairman of the board. The managing director would be Ajay Biljli, Sanjeev Kumar as executor director and Siddharth Jain would be appointed as the non-executive non-independent director of this combined entity.
The board of directors of the merged company would be reconstituted with the strength of 10 members and both the promoter’s families will have equal representatives on the board.
“Coming together of this iconic duo of Indian cinema would be driven by passion and certainly is the most historic moment of the Indian cinema”, said Siddharth Jain.
Santhosh Meena, head of research, Swastika Investmart Ltd said that this will be a win-win situation for both INOX and PVR. Because PVR has diversified geographies that will help INOX grow further but PVR has debt issues that can be helped by INOX which is a cash-rich company.
It will regain all the strengths and recover from the losses caused by the world’s halt and OTT platforms boom and will bring change to the market dynamic, with its deep pockets.
This blockbuster deal is set to bring some massive change in the upcoming year in the Indian cinema.
Both the companies have powerful screen pipelines and each has agreed to add 1,000 screens in the next five-seven years. There will be an immediate screen opening which was put on hold. PVR is will open 120-130 screens and INOX will be opening 100. But PVR and INOX will not be set up the screen too close to each other. All the new screens will be in the premium category. Because PVR has best practices, food and beverages will be added to the advantage. This merged entity will focus on the small cities and will aim to expand itself in the coming years.
This merge of the company isn’t aimed at beating the OTT platform but is aimed to balance and coexist with it. And this decisive partnership is said to bring enhanced productivity, multiple cost optimization opportunities, newer markets and will make sure to keep continuing to delight the cinema fans and provide them world-class experience.