Sapphire Foods and Devyani International Merger to Create $1 Billion Dining Powerhouse

Sapphire Foods India and Devyani International are merging to form a $1 billion dining entity focusing on expanding their KFC and Pizza Hut operations across India. The merger, requiring regulatory approval, aims to enhance supply chain and technology management for both brands while optimizing Pizza Hut's business model.

Sapphire Foods India and Devyani International, key franchise operators for Yum! Brands' restaurants like KFC and Pizza Hut, have announced a strategic merger expected to create a $1 billion powerhouse in the food and beverage sector. This move aims to revamp Pizza Hut's presence while accelerating KFC's growth in India. The announcement was made by Ravi Jaipuria, DIL's Non-Executive Chairman, who emphasized that this merger is about more than merging operations; it's about establishing one of India's largest F&B platforms.

The merged entity will assume key functions such as technology and supply chain management, particularly focusing on repositioning the Pizza Hut brand for a comeback to its past glory in the Indian market. The deal, set to complete by early 2026, will see Sapphire Foods and DIL having a combined footprint of over 3,000 stores and an annual turnover of approximately Rs 8,000 crore.

Manish Dawar, CFO of DIL, stated the merger's objective is a careful expansion pace to ensure sustainable growth. This strategic consolidation has been approved by Yum! Brands, reflecting the franchise's confidence in this giant leap towards market leadership in India's quick-service restaurant landscape.

(With inputs from agencies.)