Sapphire Foods, Devyani International Announce $934 Million Merger

Yum Brands franchise partners Sapphire Foods and Devyani International have announced a merger in a deal valued at $934 million.

According to media reports, Devyani International will issue 177 shares for every 100 shares of Sapphire Foods. The merged entity is expected to deliver annual synergies of ₹2.1–2.25 billion, beginning from the second full year of operations.

Together, the two companies operate over 3,000 outlets across India and international markets, including KFC and Pizza Hut restaurants. Post-merger, the combined business will be better positioned to compete with rivals such as Westlife Foodworld, the operator of McDonald’s in India, and Jubilant FoodWorks, the master franchisee of Domino’s Pizza.

The merger comes at a time when both companies have been facing cost pressures. In the quarter ended September, Sapphire Foods reported a 10% year-on-year increase in consolidated costs to ₹7.68 billion, while Devyani International’s expenses rose 14.4% to ₹14.08 billion.