INR 227 Crore Acquisition Deal: PVR INOX Sells 93.27% of 4700BC to Marico

Marico Ltd (the company that owns brands like Saffola, Parachute, etc.) is now eyeing a major stake in 4700BC. Many wonder (and some are confused too) as to why PVR has come into the picture. Well, 4700BC is owned by Zea Maize Private Ltd, which is currently mostly owned by PVR INOX Ltd (the cinema chain). The deal is in talks for a whopping INR 227 crore for 93.27% of Zea Maize Private Ltd. PVR INOX has agreed on the sell-off. But why does PVR want to sell 4700BC in the first place? What exactly does Marico want from this deal? Any word from either side yet? For all that, learn more.

Why Does Marico Want to Buy 4700BC?

4700BC is a premium snack brand that is best known for its popcorn. Plus, it also sells popped chips, makhana, crunchy corn, and nachos. According to Marico’s MD & CEO, Saugata Gupta, the brand perfectly fits Marico’s plan to grow in fast-growing food and snack categories. The company sees a huge potential in 4700BC. They found that the brand has a strong connection with its customers. Once the deal gets through, Marico will become the main owner of 4700BC.

Here's what Marico wants to use its existing food business scale (its wide distribution and experience) to:

• Expand 4700BC into more places and channels
• Keep the brand focused on customers
• Use 4700BC’s strong innovation skills to launch new products

“Together, we will tap the opportunity to leverage our existing scale in foods to broaden the brand’s presence across channels, while staying true to its consumer-first ethos and harnessing its top-notch innovation capabilities,” he said.

Why Does PVR Want to Sell 4700BC?

According to Ajay Bijli, MD of PVR INOX, the company wants to focus on its main business, which is running movie theatres, not snacks. Therefore, the deal marks the natural end of PVR INOX’s strategic role in the 4700BC. Chirag Gupta,

Founder of 4700BC, said that PVR INOX helped the brand grow, build scale, and gain credibility. He mentions that Marico’s experience in FMCG (fast-moving consumer goods) will help 4700BC enter its next phase. Hence, it's a well-sorted strategic move.

Final Thoughts…

Marico wants to grow in fast-growing snack categories, and 4700BC wants hands that can help its product do the same. It seems like both companies are on the same page in the INR 227 Crore acquisition deal. For more updates, keep in touch. 

https://startuptalky.com/pvr-cinemas-success-story/