PVR-INOX: The Merger of Luxury Cinematic Experience

Who doesn't love watching movies in a cinema theatre? Watching our favourite stars on screen while we munch on salted and cheesy popcorn and sip chilled sodas is our go-to weekend plan. To cater to this need, luxury cinema theatres like PVR and INOX have been enhancing the cinematic experience for years. The recent merger of these two giants looks quite promising, and there is more to come.

PVR-INOX Merger, Source: Financial Express

Remember those days when we used to go to those single-screen cinema theatres? It was nothing less than a luxury weekend, with a packet of fried snacks and a bottle of Thums Up. We went to the cinemas only if a big star was cast in the lead role. During those days, movies were released in fewer numbers, and a film would take months if not years to complete. But as time went by, things changed. Whether it is releasing four movies a year or finishing a movie in about two months, actors have started to accept more roles and give as many hits as possible. But what has remained constant is our love for watching movies on a big screen and experiencing a world-class ambience. And thus, came the need for a luxury cinematic experience.

We have all been to a multiplex at least once in our lives. And it would not be wrong to say that we often prefer PVR or INOX. But why is it our favourite go-to theatre? Why do we prefer it when we have more budget-friendly theatres in our locality? Well, the answer is quality. PVR (Priya Village Roadshow) was started by Ajay Bijli, a Harvard graduate who wanted to do something apart from his family business, which was a transport-based business. Ajay's father owned a local theatre known as Priya Cinema. He offered to bring a change and introduced the first-ever multiplex in our country. He was also one of the first ones to introduce the Dolby Sound System. He never compromised on quality and that's why he partnered with an Australian company, Village Roadshow, as they were experts in building multiplexes and theme parks. Hence the name, PVR (Priya Village Roadshow). Later, ICICI Ventures took over as a partner when the Australian company terminated the partnership.

A Mutiplex Cinema Theatre, Source: Cinepic

Inox Leisure, on the other hand, is a Mumbai-based company led by Siddharth Jain. Inox became a successful venture because it targeted small cities, as multiplexes were only to be found in the metro cities. They brought a luxury cinematic experience to places where there was not even a single theatre present. The audience quickly adopted it given that it had one of the best quality sound systems and air conditioning. Given that both companies have been doing remarkably well in their respective areas, they have been facing a set of challenges recently.

With the advent of OTT (Over The Top) platforms, more and more people are shifting to apps like Amazon Prime, Hotstar, and Netflix for their love of movies and series. It is not only inexpensive, but one can also watch a movie or a series in the comfort of their home while lying on their sofas and beds. And the recent COVID-19 pandemic did not go easy on the theatre companies, which led them to declare losses during the lockdown period. Given the challenges, it only seemed brilliant for these companies to merge. And in April 2023, both companies merged as 'PVR INOX Ltd'.

PVR INOX Ltd, Source: Stock Edge

Once the merger was declared, the share prices hit an all-time high, which is a clear signal that it was the right decision to make. Post-merger, the company has already started taking steps to revive the love for watching movies on the big screen again. The merger also helped in cost optimization, which meant that more and more resources will be used efficiently in bringing a high-quality movie experience. They have planned to shut down around 50 non-profit-making theatres. Today, PVR INOX Ltd is functioning in more than 110 cities, with 1500+ screens in 350+ properties. They have improved the sound quality systems and are on their way to providing India’s ultimate cinema experience.