Devyani International and Sapphire Foods Announce Merger to Form India’s Largest F&B Platform

Devyani International and Sapphire Foods India Ltd. have approved a transformative merger that will bring together their operations to form one of India’s largest food and beverage (F&B) platforms — spanning over 3,000 outlets across India and overseas with a projected annual turnover of around ₹8,000 crore (over $1 billion).

Under the deal, the boards of both companies agreed to merge Sapphire Foods into Devyani International via a share-swap arrangement in which Sapphire shareholders will receive 177 Devyani shares for every 100 Sapphire shares held. This consolidation is expected to unlock synergies of approximately ₹210–225 crore annually within two years through unified operational efficiencies across brands like KFC and Pizza Hut.

Once completed — a process likely to take 12–15 months pending regulatory and shareholder approvals — the combined group will control the franchise rights and operations of Yum! Brands’ major quick-service restaurant (QSR) labels in India, providing a single, unified platform for expanded growth, innovation and technology investment.

Industry analysts view the merger as a strategic move to strengthen scale, streamline the supply chain, and enhance competitiveness in India’s highly competitive QSR sector, positioning the new entity as a formidable rival to peers such as Jubilant FoodWorks.