Devyani International Eyes Turnaround for Loss-Making Biryani Business

Image Source : The Ken

Devyani International, the operator of KFC and Pizza Hut in India, has acknowledged that its biryani business is currently loss-making but aims to reverse the trend within a year. The company, which recently acquired a controlling stake in Sky Gate Hospitality, the parent brand of Biryani By Kilo, is strategizing to improve profitability through operational efficiencies and market expansion.

Current Challenges
- Rising costs of key ingredients, including rice and spices, have impacted margins in the biryani segment
- Competitive pricing pressures from established players in the Indian biryani market have made profitability difficult
- The company has faced higher operational expenses, contributing to overall losses in the segment

Turnaround Strategy
- Devyani International plans to streamline supply chain operations to reduce costs and improve efficiency
- Expansion of Biryani By Kilo outlets across key metropolitan cities is expected to drive higher sales volumes
- The company is focusing on menu innovation and targeted marketing to attract a broader customer base

Market Implications
- Investors and analysts are closely monitoring Devyani’s turnaround efforts in the biryani segment
- The company’s ability to improve profitability will influence its overall financial performance and stock valuation
- Success in the biryani business could strengthen Devyani’s position in India’s growing quick-service restaurant sector

Future Prospects
- If turnaround efforts succeed, Devyani International may explore further investments in the Indian biryani market
- The company’s broader strategy includes diversifying its food offerings beyond traditional fast-food brands
- Stakeholders will be watching for quarterly updates on financial improvements in the biryani segment

Sources: MSN Business, Financial Express, India Infoline, CNBC TV18