Brands
KFC and Pizza Hut get single India owner as Devyani, Sapphire Foods merge
MUMBAI: Devyani International and Sapphire Foods have agreed to merge, creating a single, unified franchisee for Yum! Brands’ KFC and Pizza Hut businesses in India, in a consolidation that reshapes the country’s quick-service restaurant landscape.
The boards of both companies approved a scheme under which Sapphire Foods will merge into Devyani International through a share-swap, with Devyani issuing 177 equity shares for every 100 shares held in Sapphire. The transaction is subject to regulatory, shareholder and tribunal approvals and is expected to take 12–15 months to complete.
Once closed, the combined entity will rank among India’s largest QSR operators, with a nationwide footprint and franchise rights across the entire Indian market for KFC and Pizza Hut, alongside an expanded presence in Sri Lanka.
Yum! Brands has cleared the consolidation and agreed to revised commercial terms, including enhanced waivers to accelerate store expansion, the transfer of 19 KFC outlets in Hyderabad to Devyani, and a one-time payment covering merger approval and additional territory licence fees.
The strategic play is unapologetically about scale. Management expects sharper execution from a unified brand strategy, procurement savings, tighter supply chains and leaner overheads. Devyani estimates annual synergies of Rs 210–225 crore from the second full year
of integrated operations, with full integration targeted within 15–18 months of completion.
Devyani International non-executive chairman Ravi Jaipuria, called the deal a “decisive leap”that positions the group as Yum!’s sole long-term partner for KFC and Pizza Hut in India. Samara Capital SFIL nominee director and founder Sumeet Narang, said the merger fulfils the vision of building a scaled, institutionally strong QSR platform in a high-growth market.
For Yum!, the message is equally clear. India remains a priority battleground, and backing a single, financially stronger franchisee is seen as the fastest route to growth in a fiercely competitive eating-out economy.
(Note: The cover image is AI-generated and is meant for representational purposes only.)