The Morning Brief India's Mega QSR Merger
Jan 13, 2026
In this discussion, Ratna Bhushan, a journalist at The Economic Times, and Ankur Bisen, a senior partner at The Knowledge Company, dive into the high-stakes merger between Devyani International and Sapphire Foods. They analyze the complexities and expected cost synergies of ₹210-225 crore. The conversation shifts to the challenges of scaling in a fragmented market and how the combined entity needs to stay agile to fend off niche disruptors. With growing competition and evolving consumer trends, they ponder whether this merger will truly create a QSR powerhouse.
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Mega Consolidation Reshapes QSR Landscape
- Devyani and Sapphire's merger creates India's largest listed QSR platform with over 3,000 stores and consolidated revenue above ₹7,800 crore.
- The deal signals a major industry shift but raises questions about agility in a fragmented market.
Actively Consolidate Back-Office Functions
- Combine overlapping functions to cut corporate overheads, manpower and royalty costs to unlock annual synergies.
- Use supply-chain, technology and marketing integration to accelerate store rollouts and decision-making.
Scale Can Restore Brands And Price Power
- Merger aims to revive lagging Pizza Hut while accelerating KFC expansion and boosting pricing power across cuisines.
- Analysts expect benefits to show 12–15 months post-merger as unified scale improves pricing and consumer reach.