KFC India to sell 61 more restaurants to RJ Corp-promoted DIL
KFC India to sell 61 more restaurants to RJ Corp-promoted DIL

Yum! Brands' KFC India will sell off 61 equity-owned restaurants to diversified group RJ Corp-promoted Devyani International (DIL) for an undisclosed sum. The move is in line with its global strategy to exit capital-intensive operations and focus on brand growth and development. 

Under the agreement, DIL, which is already Yum!'s biggest franchise partner in India, will be acquiring 61 additional restaurants in Karnataka, AP and Telangana.

Samir Menon, Managing Director of KFC India, said, "We continue to re-evaluate ownership strategy as part of an annual process and in line with business growth. The strategic intent is to unlock growth for the brand."

In November 2018, KFC had divested 13 restaurants to DIL for the Kerala and Goa markets.

Virag Joshi, Chief Executive Officer, DIL, stated, "KFC is one of the fastest growing brands in our portfolio. Our partnership with Yum is driven by a commitment to build the brand by expanding geographic presence and driving world-class operations."

With this latest divestment, less than 10% of KFC India's 400 outlets across more than a hundred cities are now company-operated.

Menon added, "Going forward, the company is targeting to better last year's expansion of setting up 50 additional outlets, which are predominantly expected to be through franchisees. At this point, there is no intent to set up more equity restaurants, unless the market dynamics demand."

 
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