- Competition Commission of India approved the merger of Sapphire Foods into Devyani International
- The merger brings KFC and Pizza Hut operations in India under one corporate entity
- Devyani International also franchises Costa Coffee, New York Fries, and Sanook Kitchen
The country's organised dining sector is set for further consolidation, with the Competition Commission of India clearing the proposed merger of Sapphire Foods India into Devyani International, bringing the two major franchise operators of KFC and Pizza Hut in India closer to operating under a single corporate umbrella.
In its stock exchange filing, Devyani International confirmed that the CCI had granted clearance to the proposed merger scheme, under which Sapphire Foods will be amalgamated into the company. The restaurant operator said it was awaiting the regulator's detailed order.
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The regulatory clearance advances the proposed restructuring, paving the way for both companies' KFC and Pizza Hut restaurant businesses in India to come under one management structure.
What The Merger Means For KFC, Pizza Hut Operations
Both Devyani International and Sapphire Foods operate franchise outlets of KFC and Pizza Hut across India, making the proposed merger significant for the country's organised food services industry.
Devyani International, part of the RJ Corp group, operates KFC and Pizza Hut outlets in India. It is also the exclusive franchisee of Costa Coffee, New York Fries and Sanook Kitchen in the country, besides owning and operating several homegrown food and beverage brands.
Sapphire Foods, meanwhile, operates KFC and Pizza Hut restaurants in India and has an established presence in the quick-service restaurant segment.
The merger would consolidate the businesses of the two franchise operators within Devyani International, potentially creating a larger operating platform for managing the brands, expanding their footprint and improving operational efficiencies.
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How The Merger Process Unfolded
The proposed consolidation received approval from the Devyani International board at its meeting held on August 26, 2026, following which the companies moved ahead with the regulatory process.
On September 10, Devyani International and Sapphire Foods jointly approached the CCI under the provisions of the Competition Act, 2002, seeking approval for the proposed combination. The competition regulator considered the proposal at its meeting on October 30 and subsequently communicated its approval to the companies.
The clearance comes under the regulatory framework governing combinations and acquisitions, which requires certain transactions to be examined by the CCI to assess their potential impact on competition in the relevant markets.
While the competition regulator has cleared the proposed combination, the merger remains subject to the completion of other applicable statutory and procedural requirements under the scheme of arrangement. The detailed CCI order is yet to be issued, and the companies are expected to proceed with the remaining formalities before the proposed merger can be completed.
The proposed merger is likely to alter the dynamics of India's organised food services market, as global restaurant brands step up expansion and compete more aggressively for market share in a sector witnessing changing consumer preferences and rising demand for branded dining experiences.
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