Devyani International Ltd (DIL), which operates Quick Service Restaurants of global brands KFC, Pizza Hut, Taco Bell, Costa Coffee, besides its own brand Vaango, will invest around Rs 1,000 crore in next five years for growing these brands.
DIL also plans to double the base of KFC and Pizza Hut restaurants over the next 4-5 years to enhance its position in the fast growing Indian retail F&B sector, the company said.
Besides, DIL said Yum! Restaurants India, which owns Quick Service Restaurants (QSR) brands KFC, Pizza Hut and Taco Bell, will acquire a stake in the company. DIL is Yum's franchise partner in India.
However, both the companies have not shared the details of the deal. Yum! Restaurants India is a subsidiary of global QSR major YUM! Brands.
The move follows acquisition of 74 KFC restaurants by DIL from YUM over the last 18 months, according to a joint statement by both the companies.
"We are excited to announce the strengthening of our association with Yum! through this strategic equity investment. For over 20 years, we have consistently invested in growing both KFC and Pizza Hut brands in India," DIL Founder and Chairman Ravi Jaipuria said.
DIL is an associate company of RJ Corp, the largest bottling partner of food and beverages major Pepsico, and has interests in the Indian retail F&B sector.
"This transaction will significantly strengthen us within India, and we plan to further enhance our position by doubling the base of our KFC & Pizza Hut restaurants over the next 4-5 years," said DIL CEO & President Virrag Josshi.
"In aggregate, over the next 5 years, DIL plans to invest over Rs 1,000 crore in growing its brands (KFC, Pizza Hut, Costa Coffee, Vaango and Food Courts) across the country," he added.
DIL also has partnership with YUM! Brands for some foreign markets and operates QSRs in Nepal and Nigeria through its subsidiaries. It operates around 500 KFC and Pizza Hut Restaurants in India.
Yum! Restaurants India Managing Director Samir Menon said:"DIL is our oldest franchisee partner in the country operating over 500 KFC and Pizza Hut Restaurants. They remain committed to growing the business through new development and providing winning experiences to our customers across our brands. We are confident in the India growth story and this partnership is a testament to that."
The company is the exclusive franchise partner for TWG Tea, one of the world's largest luxury tea chains, in the Indian market and also in the UK through its subsidiary there.
Gurugram-based DIL also operates Food Courts in airports, hospitals, malls and highways. In 2011, it started its own south Indian QSR chain Vaango.
It operates around 700 restaurants and outlets in India, Nepal and Nigeria.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)