PVR INOX has finalized agreements to sell its entire stake in Zea Maize Private Limited, which operates under the 4700BC brand, to Marico Limited. The all-cash transaction is valued at INR 226.8 crore. This strategic move allows PVR INOX to monetize a non-core asset, strengthen its balance sheet, and focus on its core cinema exhibition business, while enabling 4700BC to leverage Marico’s FMCG expertise for further growth.
Divestment of 4700BC
PVR INOX has divested its entire investment in Zea Maize Private Limited (ZMPL), known for its 4700BC brand, to Marico Limited. The transaction, completed via an all-cash deal, is valued at INR 226.8 crore.
Strategic Rationale
This divestment allows PVR INOX to focus on its core cinema exhibition business and unlock shareholder value. The company aims to strengthen its balance sheet and reallocate resources effectively. The divestment will not materially impact PVR INOX’s in-cinema food and beverage revenues or its growth trajectory. The transaction is expected to improve PVR INOX’s profit, free cash flow, and return ratios.
Future Growth for 4700BC
Marico’s acquisition is expected to help 4700BC leverage Marico’s sharper FMCG focus and broader distribution reach to launch new products. Marico aims to broaden the brand’s presence across channels, while maintaining its consumer-first approach and innovation capabilities.
Management Commentary
Ajay Bijli, Managing Director, PVR INOX Limited, noted that PVR INOX recognized the potential in 4700BC early on and supported its growth. He stated that the transaction represents a natural culmination of PVR INOX’s strategic role, allowing them to monetize a non-core asset. Saugata Gupta, MD and CEO, Marico Limited, mentioned that the investment aligns with Marico’s ambition to participate in fast-growing food categories through distinctive brands, and sees immense potential in 4700BC.
Source: BSE
