Cinepolis & PVR Can Merge To Create India’s Biggest Chain Of Multiplexes; Cinepolis Will Hold Majority Stake?

Sources are indicating that India’s leading multiplex chain PVR and the local unit of Mexican company Cinépolis are in the process of advanced merger talks.

PVR And Cinépolis Merger

They seem to be reshaping the country’s film exhibition industry that witnessed its first phase of consolidation over the past decade and a half.

According to the sources, the deal is “moving quickly toward fruition”.

It will result in the combined behemoth owning more than 1,200 screens.

After this deal, the number of screens run by the next biggest entity, INOX Leisure, is just about half of what the merged company would operate.

“While the finer details are being worked upon, Cinépolis will be the largest shareholder in the merged company, with around a 20% stake,” the industry sources said. 

Further adding, “PVR promoters will own between 10% and 14%, but Ajay Bijli (CMD of PVR) will have complete management control for at least three years. Cinépolis will have board seats in the merged company.”

No Need Of Approvals

The merger is expected to be announced by the end of March, as 

“Both parties are moving quickly,” as per the sources.

“This merger will not require approval from the Competition Commission of India as the combined revenues of the two companies are well below Rs 1,000 crore due to Covid-led disruptions,” said the person known to the development.

Not The First Time

Basically, the first phase of consolidation in India’s film exhibition industry commenced during the new millennium.

That time a large number of single-screen facilities failed to match up to well-capitalized corporations that ran multiple screens — and films — at the same physical facility. 

Since then, hundreds of single-screen facilities have quit the industry that is now dominated by organized exhibitors such as PVR or INOX. 

The event coincided with the first expansion drive in organized film exhibition when Anil Ambani bought out Adlabs films in 2005 and acquired screens rapidly to launch Big Cinemas.

So far, there is no response from PVR and Cinépolis India on this subject.

Presently, PVR operates 846 screens in 176 cinemas in 71 cities in India and Sri Lanka, having an aggregate seating capacity of 182,000. 

Coming to Cinépolis India, it owns 417 screens in 93 properties at 61 locations, across 22 states.

Collectively, the merged company will operate 1,263 screens across 269 locations.