KFC and Pizza Hut to Become India’s Largest Food Chain After Merger
The boards of Sapphire Foods India Limited and Devyani International Limited have approved their merger, paving the way for a single, integrated franchise for KFC and Pizza Hut in India. Under the share swap arrangement, shareholders of Sapphire Foods will receive 177 shares of Devyani International for every 100 shares held.
Both companies are among India’s leading Quick Service Restaurant (QSR) operators. Following the merger, Sapphire Foods will be merged into Devyani International, a move aimed at consolidating operations and strengthening business performance.
Approval Process Still Pending
The merger is subject to approvals from stock exchanges, the Competition Commission of India (CCI), the National Company Law Tribunal (NCLT), shareholders, and lenders. The companies estimate that the entire approval process could take 12 to 15 months. US-based food giant Yum! Brands, which owns KFC, Pizza Hut, and Taco Bell, has already approved the merger.
Devyani to Become a Larger QSR Player
After the merger, Devyani International is expected to emerge as one of India’s largest QSR companies. The consolidation is likely to deliver economies of scale, cost optimization, a stronger supply chain, and improved profitability. The company estimates annual cost savings of approximately ₹210–225 crore starting from the second full year after the merger.
19 Additional KFC Stores
As part of the arrangement, Devyani International will also take over 19 KFC restaurants in Hyderabad currently operated by Yum! India. In return, Devyani will pay a one-time fee and an additional license fee for the expanded territory. Devyani Chairman Ravi Jaipuria stated that the merger will strengthen the company’s presence in Sri Lanka and support its existing international operations.
Business Presence
Devyani International is the largest franchisee of KFC and Pizza Hut and also operates brands like Costa Coffee and Vaango across India, Nepal, Nigeria, and Thailand. Sapphire Foods operates KFC and Pizza Hut across multiple Indian states and runs KFC, Pizza Hut, and Taco Bell in Sri Lanka, with a combined network of over 1,000 restaurants.
Yum! Brands CFO Ranjit Roy said the merger would accelerate business growth in India, strengthen the supply chain, and deliver stronger long-term results.