Devyani to Acquire Majority Stake in Sky Gate Hospitality for ₹419.6 Crore

In a strategic initiative aimed at strengthening its footprint in the Indian food market, Devyani International Limited (DIL), a major force in the Quick Service Restaurant (QSR) industry, has acquired an 80.72% stake in Sky Gate Hospitality Private Limited. 

This acquisition encompasses three popular brands: Biryani By Kilo, Goila Butter Chicken, and The Bhojan. The move signals DIL’s intent to diversify its brand portfolio and broaden its reach in the traditional Indian cuisine sector.

Expansion Through Acquisition

Sky Gate Hospitality, founded by Kaushik Roy and Vishal Jindal in 2015, has become a significant player in India’s food delivery landscape. Notably, Biryani By Kilo introduced the concept of delivering freshly prepared ‘handi biryani’ and has since expanded to over 100 outlets across 40+ cities. Goila Butter Chicken gained popularity for its distinctive smoky flavour, while The Bhojan caters to vegetarian food lovers.

By integrating these brands into its portfolio, DIL now manages ten food and beverage brands, including international names like Tealive and New York Fries. This acquisition supports DIL’s strategic vision of becoming a “House of Brands” and enhances its leadership in the organised Indian QSR segment.

DIL’s Strengthened Market Position

Devyani International already holds a strong market presence as the largest franchisee for Yum Brands in India, operating KFC and Pizza Hut outlets, and as the sole franchisee of Costa Coffee in the country. The addition of Sky Gate’s brands brings authentic Indian flavours into DIL’s fold, addressing the growing consumer demand for traditional cuisine.

Ravi Jaipuria, Non-Executive Chairman of DIL, expressed confidence in the acquisition, highlighting the importance of incorporating Indian favourites like biryani into their diverse offering. Meanwhile, the founders of Sky Gate conveyed optimism about future growth, emphasising the shared vision between the two companies.

Read More: Devyani International Share Rises 4% After Acquisition Plans For Biryani By Kilo.

Devyani International Share Performance 

As of April 25, 2025, 9:30 AM, Devyani International share price is trading at ₹175.39, reflecting a 2.10% decline from the previous closing price. Over the past month, the stock has surged by 18.25%.

Conclusion

The acquisition of Sky Gate Hospitality marks a significant development in DIL’s growth trajectory, reinforcing its commitment to providing diverse and culturally resonant food options to consumers.

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