Sapphire foods and Devyani international to merge in $934 million deal

Sapphire Foods and Devyani International, two of the largest food service companies in the region, have announced a merger valued at $934 million, creating a combined entity aimed at driving stronger growth and operational scale across India and neighbouring markets. The strategic union brings together extensive brand portfolios and complementary strengths in quick service restaurants (QSR) and casual dining.

Under the terms of the deal, the companies will streamline leadership, optimise resources and integrate market functions to unlock efficiency and competitiveness. This consolidation is expected to deliver enhanced value for shareholders, strengthen the combined company’s negotiating power with suppliers and amplify its presence in existing and new territories.

The merged group will benefit from broader geographic reach, shared expertise in operations and marketing, and a diversified revenue base across multiple food and beverage brands. With coffee, fast food and casual dining all under one umbrella, the organisation is positioning itself to better navigate shifting consumer tastes and take advantage of growing demand for eating-out experiences.

Executives at both companies have highlighted the importance of the merger in accelerating innovation, improving customer experiences and building stronger platforms for digital engagement, loyalty programmes and delivery partnerships. By pooling talent, technology and market intelligence, the new entity aims to be more agile and responsive to evolving industry trends.

Industry observers note that the deal reflects broader consolidation in the food service sector, as businesses seek scale to compete with both domestic rivals and global players entering the Indian market. The combined capabilities of Sapphire Foods and Devyani International are expected to create a more formidable competitor capable of sustaining long-term expansion.