Devyani International and Sapphire Foods to Create India’s Largest Yum! Brands QSR Powerhouse after Merger

Yum! Brands two key franchise partners in India, Devyani International and Sapphire Foods India, is merging to form the QSR giant, announced both the companies in a stock filing on Thursday.

Both companies are listed and operate within the quick service restaurant (QSR) segment, managing popular chains such as KFC, Pizza Hut, and Taco Bell in India and select international markets.

Sapphire Foods currently operates KFC, Pizza Hut, and Taco Bell outlets, while Devyani International also runs KFC and Pizza Hut restaurants and is considered the largest Yum! Brands franchisee in India.

The merger has been structured to qualify as a tax-neutral transaction under the Income Tax Act. As a result, shareholders will not be liable to pay capital gains tax when their Sapphire Foods shares are exchanged for Devyani International shares.

Sapphire Foods' merger with Devyani will result in a joint entity operating over 3,000 stores and comes into effect April 1.

As part of the proposed merger, Devyani will issue 177 shares for every 100 shares of Sapphire. Annual synergies of ₹210- 225 crore are expected in the second full year of operations of the combined entity.

As of March 31, 2025, Devyani International operated more than 2,030 outlets across India, Thailand, Nigeria, and Nepal. Sapphire Foods managed 963 restaurants across India and Sri Lanka under the KFC, Pizza Hut, and Taco Bell brands.

Devyani also owns franchisee rights for global chains such as Costa Coffee, Tea Live, New York Fries and Sanook Kitchen and owns and operate brands like Vaango, The Food Street and its acquired brand Biryani By Kilo and Goila Butter Chicken, which it acquired from Sky Gate Hospitality.