Devyani International (DIL), a KFC restaurant operator in India, has entered Thailand’s restaurant market by signing agreements to acquire a stake in Restaurants Development Co (RD) for $129m.

In September 2023, RD operated a chain of 274 KFC restaurants across Thailand and employed 4,500 people.

DIL entered the deal through its subsidiary Devyani International DMCC, Dubai.

The deal marks Devyani International's first entry into Thailand’s quick service restaurants (QSR) and limited service restaurants (LSR) market.

The first KFC was opened in Thailand in 1984 and since then the brand has established itself as the largest QSR/LSR chain in the country.

In Thailand, KFC is franchised by Yum Restaurants International (Thailand) Co, a subsidiary of Yum Brands.

In a statement, DIL said: “In its pursuit of entering new geographies and simultaneously deepening its presence in existing locations, DIL is committed not only towards the expansion of its footprint in Thailand but also ensuring and elevating the consumer’s experience in the Thai market and serving local communities.

“This acquisition will position DIL as a key player in the exciting QSR/LSR market in Thailand and the region and will pave the way for additional growth and expansion. Thailand is a high middle-income country with almost 70 million population and attractive consumption levels and a strong and resilient economy.

The deal will close on or before 31 March 2024.

This month, Yum Brands’ KFC division signed a definitive agreement to acquire 218 restaurants from EG Group, the largest KFC franchise in the UK and Ireland (UK&I).

The acquisition will help KFC to fast-track its growth strategy in the large and growing UK&I chicken market.