PVR INOX sells premium snacking brand 4700BC to Marico for Rs 226.8 crore

Leading multiplex operator PVR INOX on Monday said it has sold its premium snacking brand 4700BC to FMCG major Marico in an all-cash deal valued at Rs 226.8 crore.

The PVR INOX board approved the sale of its entire 93.27 per cent stake in Zea Maize Pvt Ltd (ZMPL), which owns the 4700BC brand, the company said in a regulatory filing. Following the transaction, ZMPL will cease to be a subsidiary of PVR INOX.

4700BC is a well-known premium snacking brand in India, best recognised for its gourmet popcorn, along with products such as popped chips, makhana, crunchy corn and nachos.

“PVR INOX has monetised its entire investment in its subsidiary ZMPL to Marico Ltd in an all-cash transaction for a total consideration of Rs 226.8 crore,” the companies said in a joint statement.

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Why are they selling?

The multiplex operator said the divestment is part of its ongoing strategic review to monetise non-core assets, strengthen its balance sheet and focus more sharply on its core cinema exhibition business. It added that the transaction is expected to be accretive to profits and cash flows and will not have any material impact on its in-cinema food and beverage revenues.

Commenting on the deal, PVR INOX Managing Director Ajay Bijli said the transaction marked a natural conclusion of the company’s role in building the brand.

“We recognised the potential in 4700BC at a very early stage and supported the brand through its formative years. As it looks to scale further, the brand is well positioned under the stewardship of a scaled FMCG leader like Marico,” he said.

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Marico Managing Director and CEO Saugata Gupta said the acquisition fits well with the company’s strategy of expanding in fast-growing food categories.

“We see immense potential in 4700BC as a premium snacking brand with strong consumer connect and proven execution,” he said, adding that Marico would leverage its existing scale in foods to expand the brand across channels.

Marico, which owns brands such as Saffola, Parachute and Livon, is expanding its presence in food and premium personal care segments and aims to double its revenue to Rs 20,000 crore by 2030.

PVR INOX, formed after the merger of PVR and INOX in February 2023, currently operates 1,783 screens across 357 properties in 112 cities in India and Sri Lanka.