Devyani International and Sapphire Foods, India’s two largest operators of KFC and Pizza Hut, are set to merge in an all‑stock deal that will create a single, unified franchisee for Yum! Brands’ flagship chains in the country and a quick‑service giant with over 3,000 outlets across markets.
The boards of Devyani International Limited (DIL) and Sapphire Foods India Limited (SFIL) have approved a scheme of arrangement under which SFIL will merge into DIL through a share‑swap.
For every 100 shares of Sapphire Foods, its shareholders will receive 177 equity shares of Devyani, subject to regulatory and shareholder approvals, Devyani revealed in a regulatory statement.
The companies expect the approval process (stock exchanges, CCI, NCLT, shareholders and creditors) to take around 12–15 months, after which the merger will become effective.
Once completed, the combined entity will be among India’s largest QSR platforms, with operations spanning India, Nepal, Nigeria, Thailand and Sri Lanka and a combined turnover of nearly Rs 8,000 crore.
A single Yum! India franchisee
The merged company will hold franchise rights across the entire Indian market for KFC and Pizza Hut, replacing the current split between Devyani and Sapphire.
Yum! Brands has already given its approval for the consolidation and agreed to long‑term enhancements of certain waivers for KFC and Pizza Hut to support faster store expansion and sustainable growth.
As part of the deal, Devyani will also acquire 19 KFC restaurants currently operated by Yum! India in Hyderabad and pay a one‑time charge towards merger approval and additional territory licence fees.
Devyani’s non‑executive chairman Ravi Jaipuria termed the deal “a significant milestone and a decisive leap forward”. He said the merger will give DIL franchise rights across India for KFC and Pizza Hut and add “a strong international presence in Sri Lanka”.
“This combination will allow us to realise meaningful economies of scale, leverage a unified technology platform, and strengthen our supply‑chain capabilities… to help unlock sustained value creation and long‑term growth for our shareholders, customers, employees, and partners,” added Jaipuria.
Samara Capital founder Sumeet Narang, a nominee director on Sapphire’s board, said the deal “brings together a single, unified franchisee for KFC and Pizza Hut in India”.
Yum! Brands CFO Ranjith Roy said the company was “pleased to support this proposed merger to unlock a new phase of accelerated growth in the region and to advance supply chain operations, leading to a stronger, more resilient partner in India.”
Devyani said the company expects annual synergies of Rs 210–225 crore from the second full year after integration, driven by a unified brand strategy, stronger procurement, shared technology and leaner overheads.
Together, Devyani (over 2,000 outlets) and Sapphire (over 1,000 outlets) will operate more than 3,000 restaurants across brands like KFC, Pizza Hut, Taco Bell, Costa Coffee, Vaango, Biryani By Kilo and others, making the merged company one of the largest QSR operators in India after Jubilant FoodWorks.