Indian multiplex rivals PVR and Inox Leisure have announced plans to merge and create the biggest film exhibitor in the country.
The proposed deal was revealed by the firms on Sunday (March 27) and would involve an all-stock merger, subject to regulator approval, with the new company named PVR Inox.
If approved, it will be India’s biggest film exhibitor by some margin, operating 1,546 screen at 341 sites across 109 cities. This is a combination of PVR, which has grown its circuit to 871 screens since its launch in 1997, and Inox Leisure’s 675 screens. Between them, they claim to serve more than 170 million patrons annually.
Other multiplex firms in the country include Carnival Cinemas, which operates more than 450 screens, and Cinepolis India, with around 380 screens.
Ajay Bijli, chairman and managing director of PVR, would be named managing director of the merged entity while Inox chairman Pavan Kumar Jain would be appointed non-executive chairman of the board.
At a time when India is working to recover from the Covid-19 pandemic, which saw cinemas impacted by lockdowns and audiences increasingly turn to streaming services, both companies said the merger would help improve efficiency, reach newer markets and optimise cost. New cinemas would be branded as PVR Inox while existing sites would retain their respective brands.
In a statement, PVR’s Bijli said: “The film exhibition sector has been one of the worst impacted sectors on account of the pandemic and creating scale to achieve efficiencies is critical for the long term survival of the business and fight the onslaught of digital OTT platforms.”
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