Bikaji Foods arm to acquire 53% stake in Hazelnut Factory

17 Oct 2024 , 09:27 AM

Bikaji Foods International Ltd, a snack manufacturer, has announced a strategic investment of up to ₹131.01 Crore in Hazelnut Factory Food Products Private Ltd (THF) through its wholly-owned subsidiary, Bikaji Foods Retail Ltd.

Bikaji will invest 53.02% in Hazelnut Factory Food Products, aiming to strengthen its Quick Service Restaurant (QSR) business through a “House of Brand” strategy.

Bikaji Foods Retail Ltd signed a Share Subscription Agreement and Share Purchase Agreement with Hazelnut Factory Food Products and its promoters to outline the terms of the investment.

The acquisition will take place in several tranches over the next two years, with the first granting Bikaji Foods Retail Ltd a 40.40% stake and categorising Hazelnut Factory Food Products as an affiliate of Bikaji Foods Retail Ltd.

Under regulatory requirements, Hazelnut Factory Food Products will become a related party to both Bikaji Foods International and Bikaji Foods Retail after the purchase is complete.

Hazelnut Factory Food Products, situated in Lucknow, with a turnover of ₹44.85 Crore in FY2024. They operate in the Food and Beverage (F&B) industry, which aligns with BFRL’s main business line.

Bikaji Foods has a robust distribution network that now serves 2.7 lakh outlets directly, with intentions to expand to 3 lakh by the end of FY25. The company plans to reach 1.1 million shops via indirect distribution channels.

In August of this year, Bikaji Foods International announced the acquisition of a 55% share in Ariba Foods Private Ltd, a Ujjain-based firm that manufactures and sells frozen foods.

This move, approved at a board meeting on August 23, 2024, is a big step forward for Bikaji as it wants to diversify and improve its position in the fast growing packaged goods market.

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