This monetisation follows a strategic review by PVR Inox aimed at strengthening the balance sheet and reallocating resources towards its core cinema exhibition business
PVR Inox has monetised its entire investment in its subsidiary, Zea Maize or ZMPL, a premium snacking company operating under the 4700BC brand, to Marico in an all-cash transaction for a total consideration of Rs 226.8 crore.
This monetisation follows a strategic review by PVR Inox aimed at unlocking shareholder value, strengthening the balance sheet and reallocating resources towards its core cinema exhibition business. The divestment will have no material impact on the company’s in-cinema food and beverage revenues or its growth trajectory. Overall, the transaction is expected to be accretive to PVR Inox’s profit, free cash flow and return ratios, it said in a regulatory filing.
“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. For PVR Inox, this transaction represents a natural culmination of our strategic role and enables us to monetise a non-core asset,” stated Ajay Bijli, Managing Director, PVR Inox.
As 4700BC enters its next phase of growth, the transaction enables the brand to benefit from Marico’s sharper FMCG focus, deeper distribution reach and accelerated new product introductions, while continuing to remain premium, modern and innovation driven.
“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. 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,” highlighted Saugata Gupta, Managing Director and Chief Executive Officer, Marico.
