Leading multiplex chain PVR Inox has entered into a strategic agreement with Devyani International Ltd, franchisee of Costa Coffee, to sell premium coffee at selected premium properties.

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"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," PVR Inox said in a regulatory filing.

In a similar filing, Devyani International Ltd (DIL) said it has entered into an arrangement with PVR INOX, for introducing Costa Coffee's handcrafted hot and cold coffees at some of the PVR INOX properties.

Costa Coffee, a British coffee chain brand owned by Coca-Cola, is expanding its presence in India.

DIL, the master franchiser is going for "rapid expansion" and opened 57 new stores in FY23, taking the total count to 112 stores. Its focus is on metro and tier 1 cities, where the coffee culture is thriving.

Commenting on the development, Nuvama Institutional Equities Executive Director Abneesh Roy said PVR INOX will open Costa Coffee outlets in their premium properties.

"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," he said.

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