The Competition Commission of India approved the merger of Sapphire Foods India into Devyani International by a letter dated 30 October 2026. Sapphire disclosed the approval to the stock exchanges on 31 October, and the commission said a detailed order will follow. The two firms are major franchise operators of KFC and Pizza Hut in India. Under the scheme, Devyani will issue 177 shares for every 100 Sapphire shares. The companies first announced the deal on 1 January 2026 and filed their joint application with the regulator on 10 September 2026.
The combined firm is expected to run more than 3,000 stores and earn annual revenue of about ₹8,000 crore, based on the companies’ earlier figures. A scheme of arrangement is a tribunal-approved plan to merge companies, so the deal still needs National Company Law Tribunal approval and shareholder votes. The firms plan to use their scale across buying, supply chains, technology and marketing. The Economic Times reported that the deal is also meant to help revive Pizza Hut in India. Mint reported that Pizza Hut India grew same-store sales by 5% in the second quarter, while KFC India under Sapphire grew 14%.
Our view is that the merged firm will gain buying power over chicken, cheese, oil and packaging suppliers, and smaller quick-service chains will face tougher supplier and rent terms. Yum Brands, which owns KFC and Pizza Hut, gains one larger partner in India in place of two. Coverage has not addressed what happens to overlapping stores in the cities both firms serve, which is where staff and landlords will feel the change first. Indian mergers cleared by the competition regulator often take several more months to pass the tribunal stage. We expect tribunal-ordered shareholder meetings within six months and the merger to take effect before the end of 2027. Confidence: medium.
This is important for our readers because India’s two largest KFC and Pizza Hut operators are now a step closer to being one company. If you supply food or packaging to either firm, review your contract terms and renewal dates this week. If you lease space to a KFC or Pizza Hut outlet, ask which company will hold the lease after the merger. If you run a rival restaurant brand, track the tribunal filing for the effective date.
Sources:
The Economic Times, 31 Oct 2026
ScanX, 31 Oct 2026
Mint, 26 Oct 2026
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