The merger of PVR and INOX has created a multiplex behemoth with increased bargaining power and organisational/BS strength that would drive further share gains, enable investments in new growth areas, and potentially alter industry dynamics. The management has guided for annual synergies of Rs 225 crore in the next 12-24 months, suggesting a 15-17% upgrade to FY2024/25E EBITDA. The new entity is indeed a force to be reckoned with, even as investors look for sustained quality content.
The merger of PVR and INOX has created a multiplex behemoth with more than 1,650 screens across over 350 properties in 110 cities. PVR-INOX enjoys 18% share in screen count (43% share in multiplexes), 30% share in NBOC (50%+ share in multiplex NBOC), and F&B sales of Rs 1,500 crore. The merged entity commands the highest multiplex market share in all key regions of India. PVR-INOX would become the fifth-largest listed multiplex chain globally by screen count with the highest number of admissions per screen (~127k admissions/screen in CY2019).
Other business metrics are: 1,642 screen count (PVR
