Bikaji Foods to acquire controlling stake in The Hazelnut Factory for Rs 131 crore

Bikaji Foods International said that its wholly owned subsidiary Bikaji Foods Retail will acquire 53.02% stake in Hazelnut Factory Food Products for an amount not exceeding Rs 131.01 crore.

Hazelnut Factory Food Products (The Hazelnut Factory or THF), a cafcum artisanal sweets brand based in Lucknow. It has a retail presence in 6 stores in Lucknow and 1 store each in Kanpur & Delhi.

The brand offers specialty coffee, artisanal sweets, bakery & patisserie along with a range of cafmenu. It had recorded a turnover of Rs 44.85 crore for the financial year ended on 31 March 2024.

Bikaji Foods stated that this investment will be done in tranches and is expected to be completed in next 2 years.

 

Through this acquisition, Bikaji aims to set up a 'House of Brands to cater to unique customer tastes and preferences and establish Bikaji as a key player in the quick service restaurant (QSR) domain.

Deepak Agarwal, MD of Bikaji Foods International, said: "This acquisition marks a significant step in Bikajis journey to expand beyond traditional ethnic snacks and enter into retail QSR, premium artisanal sweets and bakery segment.

This strategic move not only marks our entry into the high-growth QSR sector but also aligns with our vision to build a 'House of Brands'.

By integrating THF's premium offerings and Bikajis manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space."

Bikaji Foods International is the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and is among the fastest growing companies in the Indian organised snacks market.

The company's consolidated net profit jumped 40.60% to Rs 58.56 crore on a 15.25% increase in sales to Rs 555.13 crore in Q1 FY25 over Q1 FY24.

The scrip fell 1.11% to currently trade at Rs 900.20 on the BSE.

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