PVR-Inox creates an expansion plan for Rs. 850 crore.
Mumbai: The merged entity of PVR and Inox Leisure is expected to spend ₹800-850 crore for adding new movie screens and retrofitting the existing ones, PVR managing director Ajay Bijli said. As much as ₹700 crore of this will go into new screen expansion and the rest for retrofitting screens.
They have set a 100-day action plan to complete the integration of the two firms, and once completed, the merger will generate annual cost and revenue synergies of ₹225 crore over the next 12-24 months, said Bijli.
As part of the action plan, the merged company will focus on integrating human resources, technology and operations, and once the integrations are complete, it will focus on unlocking cost and revenue synergies, said Bijli. They expect the synergy benefit to come from areas like box office, food & beverage and advertising in terms of revenue. The cost synergy is expected to accrue from areas like supply chain and overhead rationalisation.
In the next two years, the merged entity plans to add 200 screens per year, Bijli added.
In the current fiscal year to date, they together have launched 143 screens across 26 properties in 21 cities.
On Wednesday, PVR launched an 11-screen superplex in Lucknow’s Lulu Mall. With this launch, the company’s screen count will increase to 158 screens in 32 properties across Uttar Pradesh.
The merged entity now has 438 screens in 100 properties across North India.
PVR-Inox’s growth plan involves expanding the screen count in South India, tier-2 & tier 3 cities and increasing its share in the premium format segment, Bijli said.
The combined entity will be called PVR Inox, with Bijli serving as its MD. It, according to Bijli, will have an 18% market share in screens and 30% in box office collections in the country. The joint entity will have 1,642 screens in 113 cities and 354 properties in India.
On January 12, the National Company Law Tribunal sanctioned the scheme of arrangement between the cinema chains. In a February 23 regulatory filing, PVR announced that the company’s board had approved the allotment of more than 36.70 million shares to equity shareholders of the erstwhile Inox Leisure.