Sapphire-Devyani merger to create $1-bn QSR giant

THE MERGED ENTITY of Sapphire Foods India and Devyani International is likely to cross $1 billion in annual revenue once the transaction is completed, Ravi Jaipuria, non-executive chairman of Devyani International, said on Tuesday, outlining plans to scale KFC while prioritising a turnaround of Pizza Hut in India.

- YARUQHULLAH KHAN

Addressing analysts in a conference call, Jaipuria said the proposed combination of Sapphire Foods India and Devyani International was aimed at building one of the largest food and beverage platforms in the country rather than merely combining two businesses. Independent estimates, he said, place India's food services market at more than $100 billion, with the quick service restaurant segment alone valued at over $25 billion.

On an annualised basis, the combined business is expected to generate around ₹8,000 crore in turnover and operate more than 3,000 stores globally.