Is it true that Inox Leisure and PVR are jointly planning to take the total screens to around 4,000 over the next few years?

That is the plan as of now, although such plans could change depending on how the competitive landscape evolves and how the threat of OTT builds up. A week after the merger of PVR and Inox Leisure was announced, they have already announced an aggressive expansion plan. Currently, PVR-Inox has 1,500 active screens and 2,000 screens, if the pipeline of work in progress is also included. Real growth is expected in next 7 years.

According to the company, the number of screens will double to 4,000 screens by the year 2028. This aggressive expansion will entail an investment of Rs.4,000 crore which approximately translates into an average capital expenditure of around Rs.2.50 crore per screen. Interestingly, both these companies remain extremely positive on the multiplex space, notwithstanding the growing threat of OTT as an alternative exhibition channel.

The idea of the PVR Inox merger was to jointly tackle the challenge of OTT and also capitalize on the post-pandemic recovery in revenge spending. The combine will also look to unlock opportunities in Tier III, IV & V cities. The branding of existing screens will continue as PVR or INOX as the case may be. However, new screens opened after the merger date would be branded under the joint brand of PVR INOX, to reflect the merged status.

As of date, PVR operates 871 screens across 181 properties in 73 cities while INOX operates 675 screens across 160 properties in 72 cities. Both are huge and the merger adds heft to the market dominance at over 55% and to the balance sheet. Under the terms of the merger, shareholders of Inox Leisure get 3 shares of PVR for every 10 shares of Inox Leisure held as on the record date that will be announced for the effectiveness of the merger.