Joint Venture1 Jan 2026, 09:22 pm
Devyani International and Sapphire Foods to Merge, Creating a Single Unified Yum! India Franchisee for KFC & Pizza Hut
AI Summary
Devyani International Limited (DIL) and Sapphire Foods India Limited (SFIL) have approved a merger scheme. The merger will result in DIL becoming one of the largest quick-service restaurant (QSR) operators in India, positioning the merged entity for the next phase of accelerated growth, scale, and profitability. The merger is expected to take approximately 12 to 15 months, subject to regulatory approvals. The merged entity will focus on accelerated expansion of KFC, strengthening & revitalisation of Pizza Hut, and scaled growth of the DIL emerging brands portfolio.
Key Highlights
- Merger of Sapphire Foods India Limited with and into Devyani International Limited through a share-swap mechanism.
- Swap Ratio: 177 equity shares of DIL to be issued for every 100 equity share of SFIL.
- Arctic International, a group company, to acquire approximately 18.5% of SFILs paid up equity share capital from the existing SFIL promoters.
- Expected Synergy Benefits from the Proposed Merger: Creation of a Market Leader, Unlock growth, Economies of Scale, Operational & Capability Consolidation, Margin Expansion, and Balance Sheet Strengthening.
- DIL is expecting an overall synergy of INR 210 to 225 crores on an annual basis from 2nd full year operations of integrated company.