KFC, Pizza Hut India Operator Devyani International Buys 80% In Biryani by Kilo For Rs 419 Crores

Devyani International, the operator of KFC and Pizza Hut in India, has acquired an 80.72 per cent stake in Sky Gate Hospitality, the parent company of Biryani by Kilo.

The total value of the said transaction is Rs 431.31 crores.

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About Devyani International

Founded in 1991 by billionaire Ravi Jaipuria, one of the largest franchise operators in India, Devyani International operates leading international fast food and beverage brands like KFC, Pizza Hut, Costa Coffee and Vaango.

It operates over 2030 stores in about 280 cities in India, Nepal, Thailand and Nigeria. 

Sky Gate Hospitality was launched in 2015 by Kaushik Roy and Vishal Jindal, and expanded to about 70 outlets in 29 cities across India.

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About Sky Gate Hospitality

Sky Gate Hospitality operates 100 outlets in 40 cities through three brands - Biryani by Kilo, Goila Butter Chicken and The Bhojan. Biryani by Kilo is its biggest property.

Starting with its special Handi Biryani, Biryani by Kilo diversified its menu by adding Kebab, roasted chicken, and sweets. 

As announced in an exchange filing, the proposed transaction values the equity of Sky Gate, excluding its Krazy Kebab Co. business and investment in Peanutbutter, at ₹519 crore.

The acquisition cost is pegged at around ₹419.31 crore for the 80.72% stake on a fully diluted basis. 

“Sky Gate’s command over flavors and technique of cooking biryani, has enabled them to deliver high-quality and delectable dishes, making them standout and leader in the industry,” Ravi Juipuria said in a statement. 

Kaushik Roy and Vishal Jindal said that the partnership with Devyani International is a step towards expansion throughout the country.

“We are confident that our brands have found the right home for future growth and expansion of Sky Gate portfolio. Together, we aim to combine our knowledge and experience to enhance customer offerings and elevate the overall dining & delivery experience,” the duo said in a statement. 

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