{"url":"https://newsforagent.com/news/2026-10-30/sapphire-foods-devyani-merger-cci-approval","markdown_url":"https://newsforagent.com/news/2026-10-30/sapphire-foods-devyani-merger-cci-approval.md","title":"Sapphire Foods, Devyani Merger Cleared by India's CCI","headline":"Sapphire Foods and Devyani International Win CCI Approval for KFC and Pizza Hut Merger","description":"India's competition watchdog clears Sapphire Foods' merger with Devyani International, creating a QSR group.","section":"Mergers & Acquisitions","published_at":"2026-10-30T13:39:39+00:00","modified_at":"2026-10-30T13:39:39+00:00","author":"News Desk","key_takeaways":["The Competition Commission of India approved the proposed merger of Sapphire Foods India with Devyani International.","The combined business is expected to operate more than 3,000 stores globally with an annualised turnover of approximately Rs 8,000 crore.","Devyani International will issue 177 equity shares for every 100 equity shares held in Sapphire Foods under the share-swap scheme."],"companies":[{"name":"Sapphire Foods","is_primary":true,"profile_url":"https://akta.pro/company-profiles/0004aan/sapphire-foods","website":"http://www.sapphirefoods.in"},{"name":"Devyani International","is_primary":false,"profile_url":"https://akta.pro/company-profiles/000awpi/devyani-international","website":"http://dil-rjcorp.com"}],"source":{"publisher":"NDTV Profit","title":"KFC, Pizza Hut Franchise Operations To Come Under One Roof As Sapphire-Devyani Merger Gets CCI Nod","url":"https://www.ndtvprofit.com/business/kfc-pizza-hut-franchise-operations-to-come-under-one-roof-as-sapphire-devyani-merger-gets-cci-nod-12259660"},"other_sources":[],"tags":["Mergers & Acquisitions","Sapphire Foods","Devyani International"],"body_markdown":"The Competition Commission of India has approved the proposed merger of Sapphire Foods India with Devyani International, the companies said, a step toward combining the KFC and Pizza Hut franchise operations under one entity. [NDTV Profit](https://www.ndtvprofit.com/business/kfc-pizza-hut-franchise-operations-to-come-under-one-roof-as-sapphire-devyani-merger-gets-cci-nod-12259660) reported the approval on October 30, 2026.\n\n[Sapphire Foods](https://akta.pro/company-profiles/0004aan/sapphire-foods) is a publicly listed franchisee of Yum! Brands operating KFC, Pizza Hut and Taco Bell restaurants across India, Sri Lanka and the Maldives. [Devyani International](https://akta.pro/company-profiles/000awpi/devyani-international) is one of the largest franchise operators of Yum Brands' KFC and Pizza Hut chains in India and the sole franchisee for Costa Coffee, Tea Live, New York Fries and Sanook Kitchen in the country.\n\n## Sapphire and Devyani's Share-Swap Terms\n\nSapphire Foods and Devyani International announced the merger on January 1, 2026, through a share-swap arrangement. Under the proposed scheme of arrangement, Devyani International will issue 177 equity shares for every 100 equity shares held in Sapphire Foods.\n\nSeparately, Arctic International, a group company of Devyani International, will acquire approximately 18.5% of Sapphire Foods' paid-up equity share capital from its existing promoters. The transaction also provides an option to assign the stake to a mutually agreed financial investor.\n\nThe companies had earlier indicated that securing regulatory approvals would take approximately 12 to 15 months, after which the merger would become effective. The combined business is expected to operate more than 3,000 stores globally and generate an annualised turnover of approximately Rs 8,000 crore, according to the companies.\n\nA key focus of the merger will be to revive the Pizza Hut business in India while accelerating growth at KFC. The merged entity will take over marketing, innovation, technology and supply chain management functions for Pizza Hut.\n\nDevyani International and Sapphire Foods revised their proposed merger scheme after a planned secondary share sale by Sapphire Foods Mauritius Ltd to Arctic International was terminated by mutual agreement, Business Standard reported on August 26, 2026.\n\n## What the Company Records Show\n\nAccording to akta.pro [company records](https://akta.pro/company-data), Sapphire Foods operated 1,052 KFC, Pizza Hut and Taco Bell restaurants as of March 31, 2026, up from 1,028 as of December 31, 2025. The same records show full-year FY26 revenue of Rs 3,116 crore, with KFC contributing Rs 2,114 crore and Pizza Hut Rs 507 crore.\n\nDevyani International reported consolidated revenue of Rs 4,951.1 crore in fiscal 2025, while Sapphire Foods recorded revenue from operations of Rs 2,881.87 crore during the same financial year, according to their respective annual reports.\n\n## Sapphire Foods' Run-Up to the Approval\n\nSapphire Foods reported a net loss of Rs 1.1 crore for Q2 fiscal 2027, down from Rs 12.8 crore a year earlier, NDTV Profit reported on October 22, 2026. Revenue rose 19.7% to Rs 888 crore, and EBITDA margin expanded to 14.2% from 13.7%.\n\nThe company reported a 24% year-over-year increase in Q1FY27 EBITDA to ₹1,406 Mn, driven by a 15% rise in restaurant sales to ₹8,882 Mn, ScanX reported on August 11, 2026.\n\nDevyani International, the operator of Pizza Hut in India, reported a same-store sales growth of -2.2 percent in the June quarter, an improvement from the previous -3.7 percent, while contributing a loss of Rs 4 crore to the company, Business News Today reported on July 29, 2026.\n\n## Ravi Jaipuria on the Combined Platform\n\nAddressing analysts during a conference call on the merger, DIL Non-Executive Chairman Ravi Jaipuria said India's food and beverage market was large, expanding rapidly and becoming increasingly formalised. He cited independent estimates that put the broader Indian food services market at more than $100 billion, with the QSR segment alone estimated at over $25 billion.\n\nJaipuria said the merged entity would have more than 3,000 stores globally and an annualised turnover of around Rs 8,000 crore.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}