Merger Mania: Sapphire Foods and Devyani Unite to Form QSR Powerhouse

Sapphire Foods India and Devyani International Ltd are merging, forming a major fast-food entity with over 3,000 stores across several countries. The combined turnover is nearly Rs 8,000 crore. This strategic alliance creates a unified Yum! India Franchisee and aims for accelerated growth despite the sluggish QSR market.

In a landmark move, Sapphire Foods India and Devyani International Ltd have announced their merger, setting the stage for a formidable presence in the fast-food sector with a collective portfolio of over 3,000 outlets.

The boards of the two major Yum! Brands franchise operators sanctioned the merger scheme, aiming for a merger turnover of approximately Rs 8,000 crore. This pivotal consolidation covers operations in multiple countries including India, Nigeria, and Sri Lanka.

Despite the current challenges of lower margins in the QSR industry, this merger seeks to enhance economies of scale and strengthen technological and supply-chain capabilities, fostering long-term growth and profitability. Regulatory approvals are pending and expected to be finalized in 12-15 months.

(With inputs from agencies.)