Devyani International Limited (DIL) and Sapphire Foods India Limited (SFIL) have announced a merger to form a unified Yum! India franchisee for KFC and Pizza Hut. The combined entity will become one of India’s largest QSR operators, driving nationwide expansion, operational efficiency, and enhanced brand synergy over the next 12–18 months.
In a landmark move for India’s quick-service restaurant (QSR) industry, Devyani International and Sapphire Foods have approved a merger scheme aimed at creating a single, powerful Yum! Brands franchisee for KFC and Pizza Hut across India and Sri Lanka. The transaction, subject to regulatory and shareholder approvals, is expected to complete within 12–15 months.
Key Details Of The Transaction
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Merger of Sapphire Foods India Limited with and into Devyani International Limited through a share-swap arrangement
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Swap ratio set at 177 equity shares of DIL for every 100 shares of SFIL
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Arctic International to acquire 18.5% of SFIL from existing promoters, with potential investment participation from a financial partner
Strategic Focus & Yum! Brands’ Support
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Unified growth strategy across KFC and Pizza Hut with strong expansion momentum
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Yum! Brands has approved the merger, granting enhanced brand waivers and territorial alignment
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DIL to acquire 19 KFC outlets from Yum! India and pay a one-time merger and territorial license fee
Operational Synergies & Growth Outlook
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Estimated annual synergy benefits of INR 210–225 crore from the second full year of combined operations
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Stronger brand portfolio, consolidated supply chain, enhanced cost efficiencies, and better access to capital
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DIL’s enlarged footprint now represents over 3,000 restaurants across India and Sri Lanka, positioning it for sustained growth and leadership in the QSR space
Source: Company filings, NSE announcements, BSE updates, Yum! Brands statement