DIL Buys 80% Stake in Biryani by Kilo’s Parent Firm for ₹419 Crore
In a significant move, Devyani International (DIL), the parent company of popular fast-food chains like KFC, Pizza Hut, and Costa Coffee, has acquired an 80.72% stake in Sky Gate Hospitality, the parent company of Biryani by Kilo, for a whopping ₹419 crore. This acquisition is expected to add a significant 100 outlets across 40 cities to DIL’s portfolio, further strengthening its presence in the Indian food and beverage market.
Biryani by Kilo is a popular food chain that specializes in serving authentic and flavorful biryani, along with other North Indian and Mughlai dishes. The brand has gained a loyal customer base across the country, particularly among the younger generation who are looking for unique and flavorful food experiences.
The acquisition is seen as a strategic move by DIL to expand its presence in the food delivery and online ordering space, which has seen a surge in popularity in recent years. With Biryani by Kilo’s strong brand reputation and loyal customer base, DIL is expected to leverage this acquisition to further boost its sales and revenue.
As part of the deal, DIL will also acquire Sky Gate Hospitality’s other brands, including Goila Butter Chicken and The Bhojan, which will add to DIL’s portfolio of brands. Goila Butter Chicken is a popular brand that serves butter chicken and other North Indian dishes, while The Bhojan is a unique concept that offers a variety of regional Indian cuisine.
The acquisition is expected to create significant synergies for DIL, particularly in terms of supply chain management, logistics, and marketing. DIL can leverage its existing strengths in these areas to improve the operational efficiency of Biryani by Kilo and its other acquired brands, leading to increased profitability and growth.
The deal is also expected to create job opportunities in the food and beverage industry, particularly in the areas of marketing, sales, and customer service. With DIL’s extensive experience in managing large-scale food chains, the company is well-positioned to provide training and development opportunities to the employees of Biryani by Kilo and its other acquired brands.
In a statement, DIL’s Chief Executive Officer, Ramesh Menon, said, “We are thrilled to announce this strategic acquisition, which will further strengthen our position in the Indian food and beverage market. Biryani by Kilo is a popular brand with a strong reputation for serving high-quality food, and we believe that this acquisition will create significant value for our shareholders.”
The acquisition is also seen as a significant vote of confidence in the Indian food and beverage industry, which has been growing rapidly in recent years. With the rise of online ordering and food delivery platforms, the demand for high-quality food has increased significantly, and players like DIL are well-positioned to capitalize on this trend.
In conclusion, the acquisition of an 80.72% stake in Sky Gate Hospitality by DIL for ₹419 crore is a significant move that is expected to create significant value for both companies. With Biryani by Kilo’s strong brand reputation and loyal customer base, DIL is well-positioned to further boost its sales and revenue, and create job opportunities in the food and beverage industry.
