With the acquisition of 61 more outlets of US-based Yum Brands’ KFC India, Devyani International has once again increased its foothold in the Indian market. The amount of acquisition has not been disclosed. The outlets across the states of Karnataka, Andhra Pradesh, and Telangana would be acquired by them.
Devyani International, which is promoted by Ravi Jaipuria-backed diversified group RJ Corp., already has 500 outlets of KFC and Pizza Hut in the country. Pizza Hut is already fully franchised by them, which is Yum’s other brand in the country. With this sale, KFC India’s share of company outlets will drop to less than 10 percent.
The move is in step with Yum Brands’ strategy of exiting capital-heavy operations across the globe in a bid to sharpen focus on brand growth and development. “KFC is one of the fastest-growing brands in our portfolio. Our partnership with Yum is driven by a commitment to build the brand by expanding geographic presence and driving world-class operations,” Virag Joshi, Devyani’s chief executive, told The Economic Times.
The company started its operation by acquiring about 250 KFC and Pizza Hut restaurants in India and Sri Lanka from multiple franchisees and Yum.