Kamal Ghorui
Multiplex operator PVR INOX on Monday said it has sold its premium snacking business operating under the 4700BC brand to FMCG major Marico in an all-cash transaction valued at Rs 226.8 crore, as part of a strategic move to monetise non-core assets and strengthen its balance sheet.The PVR INOX board approved the divestment of its entire 93.27% stake in Zea Maize Pvt Ltd (ZMPL), which owns the 4700BC brand, according to a regulatory filing by the Bijli family-promoted company, reported PTI. Upon completion of the transaction, ZMPL will cease to be a subsidiary of PVR INOX.“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.PVR INOX said it has entered into definitive agreements for the transfer of the equity shares to Marico. “A duly authorised committee of the Board of Directors of the Company… approved the sale of its entire shareholding in its subsidiary, Zea Maize which owns the brand ‘4700BC’ (consisting of 93.27 per cent of the paid-up equity share capital) to Marico Ltd,” it said.4700BC is among India’s leading premium gourmet snacking brands, best known for its popcorn offerings, and has expanded into categories such as popped chips, makhana, crunchy corn and nachos.The multiplex operator said the divestment aligns with its ongoing strategic review. “Overall, the transaction is expected to be accretive to PVR INOX’s profit, free cash flow, and return ratios,” the company said, adding that the sale will have “no material impact on PVR INOX’s in-cinema food and beverage revenues or its growth trajectory”.Commenting on the transaction, PVR INOX Managing Director Ajay Bijli said the sale marked the natural culmination 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. From a niche gourmet popcorn offering, it has grown into a nationally recognised premium snacking brand. As it looks to scale further and broaden its ambition, the brand is well positioned under the stewardship of a scaled FMCG leader like Marico,” he said.Marico Managing Director and CEO Saugata Gupta said the acquisition fits well with the company’s growth strategy in food. “The investment in 4700BC aligns well with Marico’s ambition to participate in fast-growing food categories through distinctive, future-ready brands. We see immense potential in 4700BC as a premium snacking brand with deep consumer connect and proven execution,” he said.The Mariwala family-promoted company, which owns brands such as Saffola, Parachute and Livon, said it will leverage its existing scale in foods to expand 4700BC’s presence across channels. Marico has said it expects its food and premium personal care businesses to contribute 25% of domestic revenue in the next three years. The company crossed Rs 10,000 crore in revenue in FY25 and is targeting Rs 20,000 crore by 2030.Formed after the merger of PVR and INOX in February 2023, PVR INOX operates 1,783 screens across 357 properties in 112 cities in India and Sri Lanka.
