India’s Largest Multiplex Operators PVR And INOX To Merge

Amid recovery in the heavily-impacted film exhibition sector, two of India’s largest multiplex operators have announced a merger. The newly-formed “PVR Inox Ltd” will become the country’s largest exhibition company, involving the integration of rivals PVR Ltd and INOX Leisure Ltd. Still subject to regulatory approval, the new entity will offer more than 1,500 screens across 109 cities in India, accounting for around 40 percent of market share.

In the past two years, theaters in India have largely remained shut due to the pandemic. The Multiplex Association of India put out a statement last December expressing serious concerns about cinema closures and the “irreparable damage” inflicted on the Indian film industry. Cinema theaters were mandated to close in New Delhi, even as bars and restaurants were allowed to operate at 50 percent capacity, creating pushback against the restrictions.

Shares of both PVR and INOX rose on Monday after merger plans were announced. PVR Inox Ltd’s managing director will be Ajay Bijli, who is currently the chairman and managing director of PVR. Sanjeev Kumar will be appointed as the executive director of the new entity.

New theaters will be branded as PVR Inox after the merger is formalized, although existing sites will retain their current brands. Recovery will focus on bringing back the movie-going public, even as major streaming companies like Netflix, Disney and Amazon’s Prime Video have made significant inroads in the country of 1.4 billion people.

“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,” Bijli said in a press release.