Bikaji Foods International has acquired 49 per cent stake and 396 Compulsorily Convertible Debentures (CCDs) in Bhujialalji Pvt Ltd. The deal comprised 9,608 equity shares and 396 CCDs at Rs 5100 value per security aggregating to Rs 5.10 crore. The face value is Rs 10 per equity share, the company said in a regulatory filing. Bhujialalji is an upcoming company in this industry with its product portfolio comprising popular Bhujia and namkeen variants. “We are happy to announce the successful acquisition of a significant 49 per cent stake in Bhujialalji Pvt Ltd. This marks a small step in our big growth plans and we are confident that there is no fear of brand cannibalisation; Infact, multiple companies across the globe operate similarly,” said Deepak Agarwal, Managing Director, Bikaji Foods.
He added, “Our strategic vision for this collaboration is to leverage synergies that enhance the overall market position of Bikaji, while continuing to function independently. With the company strategically headquartered in Bikaner, this acquisition will help us leverage the learnings of this new brand to enable accelerated growth and expand our horizon when it comes to a new audience set.”
“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,” said Jai Agarwal, Promoter, Bhujialalji.
The acquisition comes at a time when India’s organised snacks business is currently valued at Rs 4,240 billion and has grown significantly in the last five years on account of changing lifestyles, rising incomes and urbanization. The packaged food retail revenue in FY2015 was worth Rs 2,434 billion and has registered a CAGR of approximately 8.3 per cent from fiscal 2015 to fiscal 2022. It is further estimated to grow at a CAGR of 8 per cent in next five years to reach Rs 5,798 billion, according to a Frost & Sullivan report.
Bikaji is the largest manufacturer of Bikaneri Bhujia with an annual production of 35,588 tonnes in FY23. The Bikaji brand has visibility across 23 states and 4 union territories as of March 31, 2023 and it offers products including bhujia, namkeens, packaged sweets, papad, western snacks and frozen food.