Devyani-Sapphire merger gets CCI approval, bringing KFC, Pizza Hut India operations under one roof

The Competition Commission of India (CCI) has approved the proposed merger of Sapphire Foods India Limited with and into Devyani International Limited, paving the way for the consolidation of two major quick-service restaurant (QSR) operators in the country.

The approval, announced on Friday, also covers certain related transactions. The commission said a detailed order would be issued separately.

The merger will bring the operations of the two companies under a single entity, combining their businesses in India, including their KFC and Pizza Hut franchise operations.


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Devyani International operates KFC and Pizza Hut outlets in India and is the exclusive franchisee of Costa Coffee, New York Fries and Sanook Kitchen in the country. It also operates homegrown brands.

Sapphire Foods India operates KFC and Pizza Hut outlets in India and is one of the country's leading restaurant operators.

The companies had announced the proposed merger on January 1, 2026, through a scheme of arrangement involving a share-swap mechanism.

Under the proposed scheme, Devyani International will issue 177 equity shares for every 100 shares held in Sapphire Foods India.

The combined entity is expected to operate more than 3,000 stores globally and generate annualised revenue of around Rs 8,000 crore, according to the companies' earlier announcement.

The merger is aimed at creating a larger operating platform, allowing the companies to leverage their scale across procurement, supply chains, technology and marketing.

The consolidation is also expected to help strengthen KFC's growth and support efforts to revive Pizza Hut's business in India.

The merger remains subject to other applicable statutory and regulatory approvals before it can be completed.