Merged Sapphire Foods and Devyani entity seen crossing $1 billion in annual revenue

New Delhi: The merged entity of Sapphire Foods India and Devyani International (DIL) is likely to cross $1 billion in annual turnover once the transaction is completed, according to Ravi Jaipuria, Non-Executive Chairman of Devyani International.

Addressing analysts during a conference call, Jaipuria said that by the time the merger is consummated, the combined business is expected to achieve annual revenues exceeding $1 billion. He described the transaction as “far more than combining two businesses” and said it was “about creating one of the largest F&B platforms in India”.

The merger, announced on January 1, 2026, will be executed through a share-swap arrangement, subject to regulatory approvals that are expected to take 12 to 15 months. Under the scheme, 177 equity shares of Devyani International will be issued for every 100 equity shares of Sapphire Foods India.

Jaipuria noted that India’s food and beverage market continues to expand rapidly, with independent estimates valuing the overall food services market at more than $100 billion, and the quick service restaurant (QSR) segment alone at over $25 billion.

Once completed, the merged entity is expected to operate more than 3,000 stores globally, with an annualised turnover of approximately Rs 8,000 crore. In FY25, Devyani International reported consolidated revenue of Rs 4,951.1 crore, while Sapphire Foods India reported revenue from operations of Rs 2,881.87 crore.

Explaining the operational structure, Devyani International CFO Manish Dawar said the merged entity would take over marketing, innovation, technology and supply chain management for Pizza Hut. For KFC, the scope would initially be limited to technology and supply chain functions, while “marketing and innovation will continue to be run by Yum! the way it was being run in the past”.

On Pizza Hut, Dawar said, “We’ve already negotiated with Yum! (Brands) that our priority is to turn around the business. Our priority is to put Pizza Hut back to its old, glorious days, where it used to be the market leader.” He added that the focus would be on stabilising the business rather than aggressive store expansion, noting that rapid franchise growth over the past three years had affected margins.

He also said that the net new unit count for Pizza Hut would not be negative by the time the merger is completed, while expansion for KFC would be “calibrated”.

Dawar further stated that the company has identified a global technology partner to develop a common technology roadmap across Devyani International’s portfolio, including KFC and its owned brands.

The merger has received approval from Yum! Brands, which franchises KFC and Pizza Hut in India through Devyani International.