India, Jan. 1 -- MUMBAI, January 1, 2026 - KFC and Pizza Hut operator Sapphire Foods India Limited is set to merge into Devyani International Limited, the companies announced Thursday. The consolidation aims to create India's largest quick-service restaurant (QSR) operator as franchisees face margin pressures and consumers cut back on spending.

The all-stock deal will see Devyani issue 177 shares for every 100 shares of Sapphire. The combined entity, which runs over 3,000 outlets for Yum! Brands in India and overseas, expects annual synergies of Rs 210 crore to Rs 225 crore from the second full year post-merger.

The merger consolidates ownership under the RJ Corp Group led by Ravi Jaipuria. As part of the transaction, group company Arct...