Synergies in M&A: PVR Inox Post Merger Analysis
I. Introduction According to the FICCI-EY report, the Indian media and entertainment (M&E) business rose by 20% in 2022 to reach INR2.1 trillion (US$26.2 billion), 10% more than its pre-pandemic levels in 2019.The M&E sector is further expected to increase at a CAGR of 10.5% to reach INR2.8 trillion in 2025, according to the report. Pre-merger two of the biggest multiplex operators in India were PVR and INOX; with PVR leading the industry with a 32% market share and INOX being in the second place with a 23% share. The sale of movie tickets is the main source of income for these companies, while the sale of food and drink is their secondary source. Due to the pandemic's effects on their financial situation, the merger's strategic goal is to strengthen the financial position. The resulting business seeks to combine the best aspects of both companies, quicken the rate of expansion into Tier 2 and Tier 3 cities, and improve overall business efficiency.