Devyani International (DIL), a Yum Brands franchisee in India, is set to merge its three subsidiaries with the parent company to streamline operations and improve efficiency.
In a regulatory submission, the company said the subsidiaries, namely Sky Gate Hospitality, Blackvelvet Hospitality and Say Chefs Eatery, will be amalgamated with DIL under a scheme scheduled to be effective from 1 April 2025.
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DIL stated that since the companies are its direct or indirect wholly owned subsidiaries, the company is not required to secure a ‘No Objection Letter’ on the scheme from the stock exchanges.
Additionally, no fresh shares will be issued as part of the merger.
The company further noted that the shareholding pattern will remain unchanged after the completion of the deal.
The three subsidiaries currently operate more than 100 outlets, including dine-in locations and cloud kitchens, across more than 40 cities, including Delhi NCR, Mumbai, Kolkata and Bengaluru.
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By GlobalDataOutlining the objective of the exercise, DIL said the proposed merger is intended to deliver operational synergies, improve resource and asset utilisation, and reduce operational cost and corporate tiers.
DIL added that it expects the consolidation will maximise “value creation for stakeholders”.
The franchisee currently operates over 2,000 outlets across more than 280 cities in India and in overseas markets such as Nigeria, Nepal and Thailand.
It also holds franchise rights in India for Costa Coffee, New York Fries, Sanook Kitchen and Tea Live.
In January 2026, DIL signed a merger agreement with Sapphire Foods to combine the two Yum! Brands franchise operators in India.
The merger is expected to take around 12 to 15 months to become effective.
