Devyani International strengthens leadership by acquiring Sky Gate Portfolio Brands

Devyani International Ltd. (DIL), a prominent player in India's Quick Service Restaurant (QSR) sector, has announced the acquisition of controlling stake in Sky Gate Hospitality Private Limited ('Sky Gate') along with its three brands i.e. 'Biryani By Kilo', 'Goila Butter Chicken', and 'The Bhojan'. This strategic move aims to enhance DIL's presence in the Indian cuisine segment by integrating these well-established brands into its portfolio.

Founded in 2015 by Kaushik Roy and Vishal Jindal, Sky Gate has emerged as a strong player in India's food delivery sector. Sky Gate is amongst the first ones to introduce the 'Handi Biryani' concept and deliver freshly prepared biryani. Its flagship brand, Biryani By Kilo (BBK), is one of the leaders in the organized biryani market, offering authentic, dum-cooked biryanis prepared to order and delivered in traditional handis. Under the leadership of Roy and Jindal, Sky Gate has expanded its reach over 100 stores across 40+ cities, catering to the diverse culinary preferences of Indian consumers.

This strategic move aligns with DIL's vision to diversify its offerings and deepen its strategy with respect to House of Brands. With this acquisition, DIL's brand portfolio now encompasses 10 strong and diverse food and beverage brands. This includes recent additions like Tealive, Sanook Kitchen and New York Fries. The acquisition of Biryani By Kilo, Goila Butter Chicken and The Bhojan, strengthens DIL's leadership position as one of the fastest-growing QSR chains in India.

Mr. Ravi Jaipuria, Non- Executive Chairman, DIL said, "We are truly delighted to enrich our portfolio of brands with the addition of India's favorite food category - The biryani. While our portfolio boasts a diverse array of national and international brands, we identified a need to add traditional and authentic flavors of the much-loved Indian food to our portfolio. Our partnership with Sky Gate addresses this, bringing their exceptional brands, Biryani By Kilo and Goila Butter Chicken, into our fold. 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."

Mr. Kaushik Roy and Mr. Vishal Jindal, Founders, Sky Gate said "We are delighted to partner with a seasoned industry leader. 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."

Shares of Devyani International Ltd was last trading in BSE at Rs. 175.40 as compared to the previous close of Rs. 175.60. The total number of shares traded during the day was 66855 in over 1579 trades.

The stock hit an intraday high of Rs. 176.50 and intraday low of 171.50. The net turnover during the day was Rs. 11682148.00.

Source : Equity Bulls

Keywords

DevyaniInternational Restaurants INE872J01023 QSR Acquisition SkyGateHospitality BiryaniByKilo GoilaButterChicken TheBhojan