Devyani International - Foray In The Thailand Market: Dolat Capital

Dolat Capital Report

Devyani International DMCC, Dubai, a subsidiary of Devyani International Ltd. has entered in a share purchase agreement to acquire controlling stake in Restaurants Development Co. Ltd. (existing KFC franchise partner) and its holding companies in Thailand. RD operates 274 KFC restaurants across Thailand as on September, 30, 2023.

In CY22, Devyani International posted revenue of Rs 11.7 billion while the company’s pre- IND AS brand contribution margin stands at ~14-15%.

To fund the acquisition Devyani International DMCC has entered into an investment agreement with Devyani International and Camas Investments Pte. Ltd, an affiliate of Temasek Holdings, who have committed to invest Rs 3.4 billion and Rs 3.3 billion respectively.

Post-acquisition, Devyani International and Camas Investments Pte. Ltd would hold equity in the ratio of 51:49 in the subsidiary. In addition, a funding of Rs 119 million/ Rs 3.8 billion would be made through a local Thai partner and local bank debts.

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