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Yum Brands to combine business units by brands

A man talks on his mobile phone in front of the logos of KFC and Pizza Hut, both restaurants under Yum Brands, in Shanghai, March 6, 2013. REUTERS/China Daily

(Reuters) - Yum Brands Inc (YUM) said it would combine the U.S. and international divisions of KFC, Pizza Hut and Taco Bell and keep its China and India units separate as part of a reorganization.

The reorganization will be effective from January 1 and beginning fiscal year 2014, the company will report results for KFC, Pizza Hut and Taco Bell and for its China and India divisions.

"We believe that having 100 percent focused brand teams will enable us to more aggressively accelerate growth," Chief Executive David Novak said.

The China and India units will remain separate given their "strategic importance and enormous growth potential", the company said.

Yum is the biggest U.S. restaurant operator in China and that market traditionally accounts for more than half of the company's operating profit.

But sales at restaurants in China have taken a beating since chemical residues were found in chicken from some of its poultry suppliers in China late last year.

The company has also been investing heavily in India.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Saumyadeb Chakrabarty)