 "Bikaji Foods International acquires 49% equity stake in Bhujialalji")
Bikaji Foods International Ltd on Wednesday acquired a 49 per cent stake and 396 compulsorily convertible debentures (CCDs) in Bhujialalji Pvt Ltd, the company said in a BSE filing.
The deal comprised 9,608 equity shares and 396 CCDs at Rs 5,100 value per security, aggregating to Rs 5.10 crore. The face value is Rs 10 per equity share, it added.
Bhujialalji Pvt Ltd (BPL) is a new entrant in this industry with its product portfolio comprising popular bhujia and namkeen variants.
Talking about the development, Deepak Agarwal, Managing Director, Bikaji Foods International Limited said, "This marks a small step in our big growth plans, and we are confident that there is no fear of brand cannibalisation; in fact, multiple companies across the globe operate similarly. Our strategic vision for this collaboration is to leverage synergies that enhance the overall market position of Bikaji, while continuing to function independently."
Jai Agarwal, Promoter, Bhujialalji Pvt Ltd said, "We are grateful to have this support from a market leader like Bikaji so early in our journey. This collaboration opens new doors for us, allowing us to learn and grow while preserving our brand salience. We are hoping to geographically expand our current market base, ranging from e-commerce to modern trade channels.
The acquisition comes when India's organised snacktionary business is currently valued at Rs 4.24 trillion. It has grown significantly in the last five years on account of changing lifestyles, rising incomes and urbanisation.
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In 2015, the packaged food retail revenue was worth Rs 2.43 trillion and has registered a compound annual growth rate (CAGR) of approximately 8.3 per cent from FY15-2022. It is estimated to grow at a CAGR of 8 per cent in the next five years to reach Rs 5.79 trillion, according to a Frost & Sullivan report.
Indian savoury snacks market is valued at Rs 75,100 crore in 2022 and is expected to reach Rs 1.22 trillion by 2026 at a CAGR of 13 per cent, the report added.