Devyani International Limited has informed the Exchange about Transcript
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This is the transcript of a conference call held on January 6, 2026, discussing the proposed merger between Devyani International (DIL) and Sapphire Foods India (SFIL) announced on January 1, 2026. The merged entity will have over 3,000 stores globally, an annualised turnover of approximately INR 8,000 crore, and is expected to cross $1 billion USD in annual revenues. Share swap ratio is 177 DIL shares for 100 SFIL shares, with a one-time payment of INR 320 crore to Yum! Brands. Cost synergies are guided at INR 210-225 crore, with 60% expected in year 1 and 100% within two years post-merger. Management plans to take over technology, supply chain, marketing and innovation functions for Pizza Hut, while KFC will only see technology and SCM transition, with marketing and innovation remaining with Yum!. A floor price of INR 280 has been set for the 18.5% bilateral promoter-to-promoter stake transfer from Sapphire Foods Mauritius to RJ Corp, to close in 3-15 months. Management targets low double-digit brand contribution margin for Pizza Hut in year one, with 10-year incentives negotiated with Yum!. A global technology partner has already been shortlisted.
This is a transformative consolidation in the Indian QSR space, creating one of the country's largest F&B platforms with marquee brands like KFC, Pizza Hut, and Costa Coffee. For shareholders, the all-stock merger means share dilution but also access to a larger, more diversified business with clearer growth runway. Near-term, the stock may react to synergy timelines, Pizza Hut turnaround visibility, and regulatory approval milestones over the next 9-15 months.