KFC operator Devyani International, PVR Inox join hands to operate food courts in shopping malls

PVR Inox said its net loss narrowed to Rs 130 crore for the March quarter from a loss of Rs 333 crore in the year-ago period.

Devyani International Limited and PVR INOX on May 14 announced a strategic partnership to jointly establish a company in India for the purpose of development and operation of food courts in shopping malls.

Devyani International  (DIL) operates KFC, Pizza Hut, and Costa Coffee outlets in India. This partnership will help DIL and PVR INOX reach a wider audience and expand their market presence, according to a press release.

Ravi Jaipuria, Non-Executive Chairman, DIL said, "This partnership further consolidates DIL’s position in the food courts business in India and has paved the way for additional growth and expansion opportunity. We are elated to have embarked on yet another association with PVR INOX and elevated our collaboration. DIL is committed to expanding its food courts business in India as one of the strategic future growth pillars."

In April, Jaipuria had reportedly formalised the succession plan at his $3-billion RJ Corp, which owns Varun Beverages, PepsiCo’s second largest bottler outside the US, and KFC operator Devyani International, among other businesses.

In an exchange filing PVR Inox said that the purpose of entering into the shareholders’ agreement with with Devyani International is to incorporate a new company for development and operation of food courts situated within shopping malls in India.

"Devyani and PVR Inox shall invest in the equity share capital of the proposed company in the ratio of 51:49, respectively. The proposed company shall inter alia undertake business relating to development and operation of food courts situated within shopping malls in India," the exhibitor said in the exchange filing.

Ajay Bijli, Managing Director, PVR INOX Limited said, "Through this opportunity PVR INOX will be able to pivot into pre-ticketed F&B revenue stream as opposed to the current post ticketed F&B revenue that’s very movie line up dependent. It is our first of the many steps we intend to take to further expand our F&B business. Also, our ability to copromote both movies and food to 150 million audience would be the USP of this collaboration."

DIL, today, reported a consolidated net loss of Rs 49 crore for the March quarter. The company reported a profit of Rs 60 crore in the year-ago period.

PVR Inox, too, reported its March earnings today. The company said its net loss narrowed to Rs 130 crore for the March quarter from a loss of Rs 333 crore in the year-ago period.