Devyani International forays into Thailand QSR market through a Strategic Partnership to acquire 274 KFC restaurants in Thailand

Today, Devyani International DMCC ('DID'), Dubai, a subsidiary of Devyani International Limited ('DIL'), has announced its entry into Thailand market by signing a Share Purchase Agreement and other transaction related documents, to acquire controlling interest in Restaurants Development Co., Ltd. ('RD') Thailand, through acquisition of equity stake in RD and its holding companies, to enter the Quick Service Restaurants ('QSR')/ Limited Service Restaurants ('LSR') market in Thailand.

RD operates a chain of 274 (as of September 2023) KFC restaurants across Thailand and employs more than 4,500 people. Closing is expected to take place on or before 31st March 2024 and is subject to all customary regulatory and other approvals, as may be required for the transaction.

This strategic venture into Thailand is a collaboration between Devyani International Limited and Temasek Holdings (Private) Limited, a global investment company headquartered in Singapore, with over SGD 380 billion in assets under management.

KFC in Thailand is franchised by Yum Restaurants International (Thailand) Co., Ltd, the subsidiary of Yum Brands, Inc. KFC is the largest QSR/ LSR chain in Thailand and has enjoyed enormous growth and success since the first restaurant opened in 1984.

Thailand is a strong poultry market in its basket of meat consumption and we believe there is an opportunity available for the market to grow even further.

In its pursuit of entering new geographies and simultaneously deepen its presence in existing locations, DIL is committed not only towards expansion of its footprint in Thailand but also ensuring and elevating the consumer's experience in the Thai market and serving local communities.

This acquisition will position DIL as a key player in the exciting QSR/ LSR market in Thailand and the region and will pave the way for additional growth and expansion. Thailand is a high middle-income country with almost 70 million population, attractive consumption levels, and is a strong & resilient economy.

Shares of Devyani International Ltd was last trading in BSE at Rs. 183.30 as compared to the previous close of Rs. 184.70. The total number of shares traded during the day was 134820 in over 4507 trades.

The stock hit an intraday high of Rs. 187.00 and intraday low of 182.00. The net turnover during the day was Rs. 24817750.00.

Source : Equity Bulls

Keywords

DevyaniInternational Restaurants INE872J01023 Thailand QSR