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Devyani to become one of largest QSR operators in India with Sapphire Foods merger
Jan-02-2026

Devyani International has secured its Board’s approval for merger of Sapphire Foods India with and into the company. Upon completion, the transaction will result in the company becoming one of the largest quick-service restaurant (QSR) operators in India by combining the operations of both companies, positioning the merged entity for the next phase of accelerated growth, scale, and profitability. Besides, the company has agreed on key commercial terms with Yum! Brands including long-term and well aligned enhancement of certain waivers for Pizza Hut and KFC brands from Yum! Brands, Acquisition of 19 KFC Stores restaurants currently operated by Yum! India and onetime payment to Yum! India towards merger approval and the license fee for the additional territory.

Post merger, the unified brand strategy and consumer proposition will help to unlock growth for both KFC and Pizza Hut. Further, it will provide cost efficiencies through consolidated procurement and stronger negotiating leverage with vendors, landlords, and other key stakeholders. Besides, integration of financial, managerial, and technical capabilities will strengthen execution, governance, and competitive positioning. Moreover, the productivity gains, overhead optimization and scale benefits will improve profitability of the merged entity. The company is expecting an overall synergy of Rs 210 to 225 crore on an annual basis from second full year operations of integrated company. The full integration of the two entities, along with the realization of the identified synergy benefits, is expected to be completed within 15 to 18 months from the effective date of the merger.

The proposed merger is subject to receipt of all the customary regulatory & statutory approvals, including approvals from the stock exchanges, the Competition Commission of India, the National Company Law Tribunal(s), and the shareholders and creditors of both the Companies. The Sapphire Foods India is one of Yum! Brands’ franchisee operators in the Indian subcontinent. Yum! Brands is a global restaurant company that owns and franchises major fast-food chains like KFC, Taco Bell, Pizza Hut, and Habit Burger Grill. 

Devyani International is the largest franchisee of Yum Brands in India and is among the largest chain operators of quick service restaurants (QSR) in India on a non-exclusive basis.

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