Sapphire Foods, Devyani International to merge in $934 million deal
Both companies are franchise partners of Yum Brands and together operate KFC and Pizza Hut
by
Published: Jan 2, 2026 12:20 PM | 1 min read
Follow Us
Yum Brands franchisees, Sapphire Foods and Devyani International, have announced a merger in a deal valued at $934 million.
As per media reports, Devyani International will issue 177 shares for every 100 shares of Sapphire Foods. The combined entity is expected to generate annual synergies of ₹2.1–2.25 billion starting from the second full year of operations.
Both companies are franchise partners of Yum Brands and together operate over 3,000 outlets across India and overseas, including KFC and Pizza Hut restaurants. The merged entity will compete more directly with McDonald’s operator Westlife Foodworld and Domino’s Pizza franchisee Jubilant FoodWorks.
Industry experts say scale will be key to improving profitability. “With a single entity, if they are able to unlock even half of the expected synergies, we could see a profitable enterprise where cost controls improve meaningfully,” said Akshay D’Souza, an independent consumer goods consultant.
The merger follows a period of financial strain for both companies. In the quarter ended September, Sapphire’s consolidated total costs rose 10% year-on-year to ₹7.68 billion, while Devyani’s expenses increased 14.4% to ₹14.08 billion.
Read more news about Marketing News, Advertising News, PR and Corporate Communication News, Digital News, People Movement News
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook, YouTube & Google News