Devyani International Ltd., a quick service restaurant chain operator, announced its decision to acquire up to 80.72% equity stake in Sky Gate Hospitality Pvt Ltd. and its subsidiaries for Rs 419.6 crore. Sky Gate Hospitality manages brands like Biryani by Kilo, Goila Butter Chicken, and The Bhojan. Additionally, Devyani International will also pay contingent consideration as part of the transaction terms.
Devyani International operates well-known chains such as KFC, Pizza Hut, and Costa Coffee through franchise agreements. With over 100 outlets in more than 40 cities, Sky Gate Hospitality has established a strong presence with dine-in restaurants and delivery services. The company pioneered the 'handi biryani' concept, offering freshly prepared biryani.
Following the acquisition, Sky Gate will become a subsidiary of Devyani International, allowing the company to enhance its portfolio by including Indian cuisine brands. Ravi Jaipuria, non-executive chairman of Devyani International, emphasised the strategic importance of adding traditional Indian flavors to their diverse portfolio, citing the popularity of brands like Biryani by Kilo and Goila Butter Chicken.
Founded in 2015 by Kaushik Roy and Vishal Jindal, Sky Gate Hospitality has emerged as a leading player in India's food delivery sector, recognised for its high-quality and flavorful dishes.
"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.
(With PTI Inputs)
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