Sapphire Foods India plans to merge with Devyani International, consolidating KFC and Pizza Hut franchise operations under one listed entity. The transaction, structured as a tax-neutral merger, will see Sapphire Foods shareholders receive 177 Devyani International shares for every 100 held. This consolidation occurs amid sector challenges like slowing sales and margin pressure. Shareholders must understand capital gains tax implications for future sales of their new Devyani International shares.