India’s organised food services market is witnessing steady consolidation, and Devyani International is moving aggressively to strengthen its position.
The company has acquired the remaining stake in Sky Gate Hospitality for approximately ₹57.5 crore , gaining full ownership of the business. Sky Gate operates well-known Indian food brands such as Biryani By Kilo and Goila Butter Chicken , both of which have built strong recall in the premium delivery and dine-in segments.
Devyani International is best known as the master franchisee for global QSR brands including KFC , Pizza Hut , and Costa Coffee in India.
With the full acquisition of Sky Gate, the company is signalling a clear strategic shift—deeper participation in Indian cuisine-led brands , which typically offer stronger margins and higher regional loyalty compared to international QSR formats.
India’s food services market continues to expand, driven by:
Urbanisation
Rising disposable incomes
Rapid growth of food delivery platforms
At the same time, smaller restaurant brands are finding it increasingly difficult to scale independently due to rising input costs, talent constraints, and operational complexity.
By fully acquiring Sky Gate Hospitality, Devyani International gains:
Full control over brand strategy and expansion
Access to an established and loyal customer base
Stronger positioning in the Indian food and delivery-led QSR segment
This transaction reflects a larger pattern playing out across the sector. Well-capitalised food service operators are acquiring strong regional and premium brands , creating national food platforms with scale, efficiency, and diversified portfolios.
As consolidation accelerates, Indian cuisine-focused brands are emerging as a key battleground for growth in the country’s evolving QSR landscape.
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