Tamil News

PVR To Acquire SPI Cinemas

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PVR Cinemas, led by Ajay Bijli, will soon acquire SPI Cinemas, which runs the iconic Sathyam and Escape of Chennai, among others. Both companies have issued a statement to the effect. The deal has been spoken about on and off  since 2015. An Economic Times report on Sunday stated that PVR has finally reached an agreement with SPI to acquire it for over Rs 850 crores.

As part of the agreement, PVR will get a 71 per cent stake in the company from the existing shareholders. SPI Cinemas, owned by Kiran M Reddy and Swaroop Reddy, operates around 68 screens at present, with eight more to commence operations soon. Recent reports suggest that Kiran and Swaroop Reddy will continue to be involved in the operations of the chain and that it will remain a distinct entity.
Bijli said the acquisition of SPI Cinemas is of significant strategic value for PVR and will cement its leadership position in the country.
It will make PVR the ‘undisputed’ leader in the South Indian Market and also provide a platform for them to expand.

“This transaction is a significant step in helping us achieve our vision of having 1000 screens by 2020,” Bijli told The Economic Times.“This combines two proven business models and will create significant value for moviegoers as well as all the stakeholders,” Kiran Reddy of SPI Cinemas. was quoted as saying.

In a statement released on Monday, Kiran Reddy said: “… this decision is not solely a business decision, but one that is based on the larger picture. Our intent is to combine best practices and learnings from two successful brands and use our combined strength to really, truly transform your moviegoing experience, at scale.”

SPI Cinemas is a premium cinema chain that has established itself in Tamil Nadu, Kerala, Karnataka, Maharashtra (Mumbai), Telangana as well as Andhra Pradesh. Apart from this, it is also a leading film distributor in Tamil Nadu. 

The chain is known for having transformed the filmgoing experience with its theatres. It is also renowned for its culinary offerings, particularly the popcorn, the corn for which still comes from Nebraska.
Fans of the cinema chain were taken aback by the news. While some reacted with dismay, others wondered if PVR would be able to maintain the high standard set by SPI Cinemas. Many were worried if their favourite popcorn would still be available.

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