PVR INOX to sell 4700BC to Marico in `226.8 cr all-cash deal, become negligible debt firm
New Delhi: Multiplex operator PVR INOX on Monday said it will divest its premium snacking business under the 4700BC brand to FMCG major Marico Ltd in an all-cash transaction valued at Rs 226.8 crore, as part of its strategy to cut debt and sharpen focus on its core cinema exhibition business.
The company’s board has approved the sale of its 93.27 per cent stake in Zea Maize Pvt Ltd (ZMPL), which owns the 4700BC brand, PVR INOX said in a regulatory filing. The transaction is expected to be completed within 30 days of signing definitive agreements, chief financial officer (CFO) Gaurav Sharma said.
“So post this divestment, the proceeds will be used towards further reducing the debt and redeploying the capital in our core business. We will be a negligible net debt company after this transaction is completed,” Sharma said.
Formed after the merger of PVR and INOX in February 2023, the company has been moving towards an asset-light model over the past three years, focusing on lowering capital expenditure intensity and debt. The divestment is in line with this strategy of monetising non-core assets to strengthen the balance sheet, Sharma added.
ZMPL reported a turnover of Rs 98.66 crore, accounting for 1.71 per cent of PVR INOX’s consolidated revenue. However, despite strong revenue growth, the subsidiary has been loss-making at both EBITDA and profit-after-tax (PAT) levels.
“This subsidiary has been doing very well in terms of revenue, but it has been loss-making. The next phase of growth requires significant capital and FMCG expertise, particularly in distribution and product expansion,” Sharma said.
PVR INOX has invested about Rs 94.6 crore as equity in 4700BC over time, and the transaction delivers a healthy return, translating into an internal rate of return of around 24.5 per cent on its total equity investment, he said.
In a joint statement, PVR INOX and Marico said ZMPL would cease to be a subsidiary of the cinema chain once the transaction is completed.
Confirming the acquisition, Marico said it has signed definitive agreements to acquire a 93.27 per cent stake in ZMPL, which owns 4700BC, one of India’s leading premium gourmet snacking brands known for popcorn as well as offerings such as popped chips, makhana, crunchy corn and nachos.
“Going forward, 4700BC will focus on accelerating growth through new product launches across emerging snacking segments, strengthening its multi-channel distribution network and building a differentiated premium brand anchored in innovation,” Marico said.
PVR INOX said the existing arrangement for selling popcorn at 47 kiosks at select cinema locations will continue on an arm’s-length basis and does not constitute a material portion of its overall food and beverage revenue.
The company has also completed the process of shutting down non-performing screens, Sharma said.
PVR INOX Managing Director Ajay Bijli said the transaction marks the natural culmination of the company’s strategic role in building the brand. “As 4700BC looks to scale further, it is well positioned under the stewardship of a scaled FMCG leader like Marico,” he said.
Marico MD and CEO Saugata Gupta said the investment aligns with the company’s ambition to expand in fast-growing food categories through distinctive brands. Marico aims to double revenue to Rs 20,000 crore by 2030.
PVR INOX operates 1,783 screens across 357 properties in 112 cities in India and Sri Lanka.
