Sapphire Foods to merge with Devyani Intl creating QSR chain with over 3,000 outlets |
New Delhi: Sapphire Foods India and Devyani International Ltd (DIL), the two leading operators of the KFC and Pizza Hut brands, are set to merge, creating a fast-food giant with over 3,000 stores. The boards of Devyani International Ltd (DIL) and Sapphire Foods India Ltd (SFIL), the two leading franchise operators of Yum! Brands, at their respective meetings held on Thursday, approved a scheme of arrangement for the merger, which will have a combined turnover of nearly Rs 8,000 crore.
As per the scheme of arrangement, SFIL will merge with DIL, an RJ Corp firm promoted by the Jaipuria family. The combined entity will have operations in markets such as India, Nigeria, Nepal, Thailand and Sri Lanka. Besides Yum! Brands like KFC, Pizza Hut, and Taco Bell, the combined entity will also hold licenses for other global QSR brands, including Costa Coffee, Tea Live, New York Fries, and Sanook Kitchen, in their respective markets.
Moreover, this strategic consolidation of the two Quick Service Restaurant (QSR) operators will also create a single unified Yum! India Franchisee for KFC and Pizza Hut. The merger is happening at a time when Indian QSR chains are witnessing sluggish growth, lower margins, and almost flat demand growth. According to the scheme of arrangements, 177 equity shares of DIL will be issued for every 100 equity shares of........