PVR and INOX Merger
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Will this deal raise eyebrows in CCI?
Here is how PVR & INOX can unlock synergies,
1/ Best real estate in the country allowing them to command better prices for Ad Revenue
2/ Negotiate lower revenue share with distributors
3/ F&B sourcing and vendor consolidation would help lower COGS
4/ Corporate overheads can be shared
More importantly, given the stronghold of
PVR in North and South
INOX in East and West
they can expand rapidly and are looking to add 2,000 screens in the next 5-10 years
So why should CCI be worried about this?
With 1500+ screens today, they only own 17% of screens in the country but they will now own ~50% multiplex screens and with new screens in the pipeline it might take it up to ~70% creating a monopolistic scenario in the multiplex industry.
Let’s say it gets approved,
Will this mean that your movie tickets and popcorn prices go up?
If the prices do go up, then it would make
Or will PVR & INOX pass on the benefits to its customers?
Source: TOI
