PVR Inox, the multiplex chain, has forged a strategic partnership with Devyani International, the franchisee of Costa Coffee, to offer premium coffee at selected upscale properties.
In a regulatory filing, PVR Inox stated, “PVR INOX Ltd has entered into an arrangement with Devyani International Ltd on October 4, 2023, for introducing Costa Coffee’s handcrafted hot and cold coffees at some of the Company properties.”
In a parallel filing, Devyani International Ltd (DIL) affirmed the arrangement with PVR INOX, noting their collaboration to introduce Costa Coffee’s handcrafted beverages at specific PVR INOX properties.
Costa Coffee, a British coffee chain owned by Coca-Cola, is actively expanding its footprint in India.
DIL, functioning as the master franchiser, is undergoing “rapid expansion” and has unveiled 57 new stores in FY23, elevating the total count to 112 stores. The primary focus is on metro and tier 1 cities, where the coffee culture is flourishing.
Commenting on this development, Nuvama Institutional Equities Executive Director Abneesh Roy said, “Given that hot beverages till now have been a small business for PVR INOX, we see this as an attempt to make it bigger. We see this as another move by PVR to premimise and diversify its F&B offerings to consumers and maintain BUY on PVR. PVR already is one of the large F&B retailers in India.”
