Merger talks between Devyani International and Sapphire Foods, the two largest operators of KFC and Pizza Hut in India, have now moved into an advanced stage, according to people familiar with the discussions.

Together, the two companies run more than 3,000 outlets nationwide, anchoring Yum Brands’ presence in the country. If concluded, the deal would consolidate the entire KFC and Pizza Hut India system under one platform.

Sources told CNBC-TV18 on Thursday that Yum Brands is driving the consolidation effort, encouraging both franchisees to explore a unified structure that can deliver stronger supply-chain efficiencies, and smoother operational planning.

According to these sources, the structure being evaluated involves Sapphire merging into Devyani, with Devyani expected to remain the

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