Devyani International and Sapphire Foods India are merging in a share-swap deal to create India's largest quick-service restaurant (QSR) operator, combining over 3,000 KFC and Pizza Hut outlets. The merger, subject to regulatory approvals expected within 12-15 months, aims to achieve annual synergies of Rs 210-225 crore through economies of scale and operational efficiencies. This consolidation occurs amidst industry challenges like slowing sales and margin pressures, with the combined entity poised to compete more effectively.