Devyani International, the franchise owner of KFC and Pizza Hut in India, has inked a joint venture agreement to set up food courts in railway stations.
What Happened: The firm entered an agreement with R.K. Associates & Hoteliers, a licensee of IRCTC, to invest in a joint venture. Devyani will own 51% of the joint venture while R. K. Associates will hold 49%.
The joint venture will develop, operate and maintain of Food Courts, standalone food and beverage outlets and lounges within the existing or future territories of railway stations.
The move could give Devyani a competitive advantage over competitors as it can leverage the Railways’ vast footprint across the country and its massive footfall.
Devyani also announced its results for the second quarter, earning a net profit of ₹35.82 crore for the quarter ended September, down 36.9% from the ₹56.83 crore it earned last year.
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The company’s total revenue rose 9.63% to ₹819.47 crore from ₹747.42 crore that it made last year.
Price Action: Devyani International’s share price was up 1.61% at ₹192.90 in afternoon trade on Tuesday.
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