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Devyani International Limited (DIL) and Sapphire Foods India Limited (SFIL) have approved a scheme of arrangement for the merger of SFIL with and into DIL. This strategic consolidation aims to create one of India's largest quick-service restaurant (QSR) operators. The merger is structured as a share-swap, with 177 equity shares of DIL to be issued for every 100 equity shares of SFIL. Yum! Brands has approved the consolidation and agreed to key commercial terms, including enhancements to waivers for Pizza Hut and KFC brands to accelerate transformation and growth. DIL will also acquire 19 KFC restaurants currently operated by Yum! India in Hyderabad. The transaction is expected to result in significant synergy benefits, including cost efficiencies through consolidated procurement, operational and capability consolidation, and margin expansion. DIL anticipates overall annual synergies of ₹210 to ₹225 crore from the second full year of operations post-merger. The merger process is subject to regulatory and statutory approvals and is expected to take approximately 12 to 15 months to become effective, with full integration anticipated within 15 to 18 months from the effective date.

Ravi Jaipuria, Non-Executive Chairman of DIL, stated that the merger marks a significant milestone, granting DIL franchise rights across the entire Indian market for KFC and Pizza Hut, and adding a strong international presence in Sri Lanka. Sumeet Narang, SFIL nominee director, expressed excitement about building a scaled, institutionally strong QSR platform. Ranjith Roy, Yum! Brands CFO, affirmed their support for the merger, highlighting India as a high-priority market with significant growth potential.

Upon completion, the merged entity will focus on accelerated expansion of KFC, strengthening Pizza Hut, and scaling DIL's emerging brands portfolio. DIL currently operates over 2,000 stores across India, Thailand, Nigeria, and Nepal, and is the largest franchisee of Yum! Brands in India and Nepal. SFIL operates over 1,000 restaurants across India and Sri Lanka, holding franchise rights for KFC, Pizza Hut, and Taco Bell.