PVR INOX on Monday, January 26, announced the sale of its entire stake in Zea Maize Private Limited (ZMPL), which manages the well-known snack brand “4700BC”, to the consumer goods giant Marico. The board committee authorised the deal at an overall value of ₹226.8 crore.
The cinema chain operator is set to sell its 93.27% ownership in ZMPL to Marico Limited, and the definitive agreements have already been signed. Once the sale is finalized, ZMPL will no longer be a subsidiary of PVR INOX Ltd. The company has stated that ZMPL is neither a significant subsidiary nor is it publicly traded on any stock exchange.
Furthermore, upon the completion of three years from the execution date, PVR INOX holds the option to purchase the remaining stake in Zea Maize for an amount to be established at that time, contingent upon meeting specified milestones, obtaining necessary approvals, and adhering to the terms and conditions outlined in the definitive agreements.
Saugata Gupta, MD and CEO, Marico Ltd said – ‘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.”
Further, Chirag Gupta, Founder, 4700BC said, that this marks a defining moment in the brand’s journey. While PVR INOX has played a pivotal role in building scale and credibility, Marico’s FMCG expertise will be instrumental as 4700BC enters its next chapter.
“With the strong backing and exciting new launches ahead, the focus for us remains on building one of India’s most loved premium snacking brands,” said Gupta.
Talking about agreement, Ajay Bijli, MD, PVR INOX added that from a niche gourmet popcorn offering, it has grown into a nationally recognized 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.
Buyer details
Marico Limited, the purchasing company, is recognized as one of India’s foremost consumer goods firms involved in international beauty and wellness sectors. The company markets its products in India and certain developing markets throughout Asia and Africa. Notably, Marico has no connections to any promoter, promoter group, or affiliated companies of PVR INOX, ensuring that this transaction is conducted at arm’s length.
On Friday’s session, Marico share price ended 1.41% lower at ₹740.90 apiece on the BSE, while PVR Inox closed nearly 3% lower at ₹931.85 per share.
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