Two of India’s largest KFC and Pizza Hut franchise operators, Devyani International and Sapphire Foods India, have agreed to merge, marking a major consolidation in the country’s quick-service restaurant sector.
The $933M deal, also approved by Yum! Brands, will place the operations of the two chains under a single operator in India, expected to be completed within 12 to 15 months, pending regulatory and shareholder approvals.
According to the stock exchange filings, Devyani will hold exclusive franchise rights for the entire Indian market. Under the agreement, it will also take over 19 KFC outlets in Hyderabad, which are currently managed directly by Yum! India.
Yum! Brands’ India operations have been split between the two groups, with Devyani, controlled by Ravi Jaipuria’s RJ Corp and Samara Capital-backed Sapphire Foods operating in distinct territories.
The companies said the merger is aimed at achieving scale-driven efficiencies amid rising costs, intensifying competition and uneven consumer demand.
“This combination will allow us to realise meaningful economies of scale, leverage a unified technology platform and strengthen our supply-chain capabilities,” said Ravi Jaipuria, Non-Executive Chairman of Devyani International. “Together, these advantages will help unlock sustained value creation and long-term growth for our shareholders, customers, employees and partners.”
