Devyani International to acquire 80.72% stake in ‘Biryani By Kilo’ operator for Rs 419.6 crore

Mumbai: Quick service restaurant chain operator Devyani International on Thursday said it will acquire up to 80.72% stake in Sky Gate Hospitality, which operates brands including 'Biryani By Kilo', for Rs 419.6 crore.

The acquisition includes three brands of Sky Gate - Biryani By Kilo, Goila Butter Chicken, and The Bhojan.

The company's board in its meeting approved acquisition of up to 80.72% equity stake for Rs 419.6 crore, on fully diluted basis, in Sky Gate Hospitality along with its subsidiaries, Devyani International (DIL) said in a regulatory filing.

In addition, the company will also pay contingent consideration as per the terms of the transaction documents, DIL said.

DIL operates quick service restaurant chains such as KFC, Pizza Hut, and Costa Coffee through franchise agreements.

Sky Gate along with its subsidiaries owns brands Biryani By Kilo, Goila Butter Chicken and The Bhojan. It predominantly operates through a chain of over 100 outlets including dine-in restaurants in more than 40 cities and is amongst the first ones to introduce the 'handi biryani' concept and deliver freshly prepared biryani, it added.

Post the transaction, Sky Gate will become a subsidiary of the company, the filing added.

"This strategic move aims to enhance DIL's presence in the Indian cuisine segment by integrating these well-established brands into its portfolio," the company said in a statement.

Commenting on the acquisition, DIL Non- Executive Chairman, Ravi Jaipuria said, "While our portfolio boasts a diverse array of national and international brands, we identified a need to add traditional and authentic flavours of the much-loved Indian food to our portfolio."

He further said,"Our partnership with Sky Gate addresses this, bringing their exceptional brands, Biryani By Kilo and Goila Butter Chicken, into our fold."

Founded in 2015 by Kaushik Roy and Vishal Jindal, Sky Gate has emerged as a strong player in India's food delivery sector.

"We are confident that our brands have found the right home for future growth and expansion of Sky Gate portfolio. Together, we aim to combine our knowledge and experience to enhance customer offerings and elevate the overall dining and delivery experience," Roy and Jindal said.

With this acquisition, DIL said its brand portfolio now encompasses 10 diverse food and beverage brands, including recent additions like Tealive, Sanook Kitchen and New York Fries.

"The acquisition of Biryani By Kilo, Goila Butter Chicken and The Bhojan, strengthens DIL's leadership position as one of the fastest-growing QSR chains in India," the company said.