PVR-Inox Turning Into A Sizeable Player: Motilal Oswal

Motilal Oswal Report

The merger of PVR Ltd.-Inox Leisure Ltd. has led to the creation of the largest multiplex chain, equipped with over 1,600 screens and a seating capacity of 0.35 million.

The merged entity with a 18% screen share and 30% box office share looks to further strengthen its leadership position and targets to add 180-200 screens annually with focus on higher growth Southern market (40% of new screens to be opened in South).

Nearly 82% of the screens are to be opened in Metro and tier-I cities. The company has 160 screens under fit-outs, while ~150-160 are expected to be received for handover in FY24.

Further, leveraging its wide reach and scale, the company looks to expand its food and beverage segment by upgrading product offerings at competitive pricing and by tying up with Zomato and Swiggy for delivery.

Although the company targets to achieve 5% of F&B spends from the delivery, any significant contribution from this segment remains far-fetched.

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