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Sapphire Foods India plans to merge with Devyani International. The move will bring two of Yum! Brands’ largest franchise partners under one scaled quick-service restaurant (QSR) platform.
Context: both the companies operate KFC and Pizza Hut outlets in India. The merger will combine these operations under a single umbrella, strengthening Yum! Brands’ footprint in India and select overseas markets.
Yum! Brands is a global fast-food giant behind KFC and Pizza Hut, with Devyani International and Sapphire Foods operating these brands as its key franchise partners in India and select markets.
Devyani runs 2,000+ outlets across 280+ cities in India, Thailand, Nigeria and Nepal. Sapphire, set up in 2015, operates KFC and Pizza Hut restaurants across India and Sri Lanka.
Why it matters: the deal comes at a tough time for fast-food players. Rising living costs have slowed eating-out demand, squeezing same-store sales and margins.
By coming together, the two companies aim to cut costs, improve efficiencies and protect profitability through scale.
The process: under the merger plan, Devyani will issue 177 shares for every 100 shares held in Sapphire. Ahead of the merger, Arctic International will acquire about 18.5% of Sapphire from existing promoters.
As part of the agreement, Devyani will also take over 19 KFC outlets in Hyderabad and pay a one-time charge to Yum! India for approvals and additional territory.
What changes next: Yum! Brands has agreed to extended commercial waivers for KFC and Pizza Hut to support expansion.
Zoom out: India’s fast-food market is on a strong growth path, projected to reach nearly $47.8 billion by 2028, growing at a 7.3% annual rate.
That expanding opportunity explains why Devyani and Sapphire are choosing scale now, to capture a bigger slice of India’s fast-growing QSR market.
