Stock Jumps After Strengthening Leadership by Acquiring Sky Gate Portfolio Brands: Biryani by Kilo, Goila Butter Chicken and The Bhojan
The company has a market cap of over Rs 21,500 crore and has an ROE of 5 per cent & an ROCE of 9 per cent.
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 organised 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 to 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 concerning 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.
About Sky Gate Hospitality Private Limited
Sky Gate operates over 100 outlets across 40+ cities (including Dine-in and Cloud Kitchens). Biryani By Kilo, known for its freshly dum-cooked biryanis, since 2015. Goila Butter Chicken redefined the classic butter chicken with its signature smoky flavour and rich taste. The Bhojan further offers a variety of pure vegetarian meals and snacks, catering to the diverse palate of Indian consumers
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About Devyani International Limited
Devyani International Limited (DIL) is a fast-growing QSR operator and the largest franchisee for Yum Brands (KFC & Pizza Hut) in India. It's also the sole franchisee for Costa Coffee in India and owns Vaango, a South Indian vegetarian brand with a presence in food courts. DIL has a strong footprint in Indian airports and, as of December 31, 2024, operated over 2,000 stores across India, Nigeria, Nepal & Thailand, serving as a key growth engine for the multinational conglomerate RJ Corp.
Today, shares of Devyani International Ltd surged 3.1 per cent to an intraday high of Rs 180 per share from its intraday low of Rs 174.65 per share. The stock is down by 19.2 per cent from its 52-week high is Rs 222.75 per share and up 38.5 per cent from its 52-week low of Rs 130.05 per share.
The company has a market cap of over Rs 21,500 crore and has an ROE of 5 per cent & an ROCE of 9 per cent. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.