6 Facts to Know Before You Invest in Devyani International IPO

Devyani International IPO
IPO
03/08/2021

Devyani International IPO opens on 04 August and will close for subscription on 06 August. The price band of the IPO is Rs.86-90. 

Here are some of the interesting facts about Devyani International are as follows: 

1.    Devyani International (DIL) is the largest franchisee of Yum! Brands in India, in addition to its own brands and other (non Yum! Brands).

2.    It operates 655 stores nationally – 605 in core brands (KFC: 264; Pizza Hut: 297; Costa Coffee: 44) and 50 in other businesses – across 155 cities, as of FY21. In addition, DIL has 37 KFC & Pizza Hut stores internationally (Nepal and Nigeria). Other businesses include stores of its own brands, such as Vaango and Food Street.

3.    Core brand stores have clocked a Cagr of 14% from FY19 to FY21, mainly driven by new KFC store openings (40% Cagr). These 605 stores are located across 26 states and 3 union territories.

4.    DIL’s store expansion and development strategy is focussed on high potential locations, including the high street, malls, food courts, hospitals, business hubs, airports, and transit areas. The new stores are consistent, in terms of the look & feel, across various formats, including dine-in, takeaway and delivery.

5.    DIL’s core brands – KFC, Pizza Hut and Costa Coffee – are highly recognisable, with a sizeable global footprint. KFC is a global chicken restaurant brand, with over 25,000 restaurants in over 140 countries (as of Dec-20). Pizza Hut is the largest restaurant chain in the world, specialising in the sale of ready-to-eat pizza products, and operates in the delivery, carryout and casual-dining segments with 17,639 restaurants globally (as of Dec-20). Costa Coffee is a global coffee shop chain, with over 3,400 coffee shops in 31 countries.

6.    DIL would continue to invest in technology and leverage its digital ecosystem, for driving sales, improving the guest experience, and increasing operational efficiency. DIL plans to invest behind end-to-end digitalisation, automation, artificial intelligence and machine learning, to effectively connect online traffic with offline assets. Connecting the front-end, guest-facing systems to back-end systems would result in a robust & seamless supply chain. Also, the company plans to work with Yum! to improve its technology platform and further integrate its systems with Yum!’s, to ensure greater operational efficiency. DIL’s digital assets currently are a source of competitive advantage, and the company would look to nurture these going forward.

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