Bikaji Foods International (Bikaji), an ethnic snacks brand, has announced that Bikaji Foods Retail (BFRL), the wholly-owned subsidiary of Bikaji, will make a strategic investment of Rs 131.01 crore for an acquisition of 53.02% stake in Hazelnut Factory Food Products (The Hazelnut Factory), a Café cum Artisanal sweets brand based in Lucknow.
This investment will be done in tranches and is expected to be completed in the next two years. Through this acquisition, Bikaji aims to set up a House of Brands to cater to customer tastes and preferences and establish itself as a key player in the Quick Service Restaurant (QSR) domain.
This acquisition will enable Bikaji to expand its product portfolio into the premium bakery and patisserie segment, while also incorporating various café offerings to meet evolving consumer preferences, the company stated.
Further, the company clarified that the acquisition of The Hazelnut Factory will enhance Bikaji’s ‘House of Brands’ by providing cross-selling opportunities, flexible menu offerings, a diverse customer base, a diversified brand portfolio, shared facilities and resources, and increased market presence.
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As per the company, the acquisition comes at a pivotal moment, as the QSR segment is witnessing rapid growth and an increased store presence in tier-2 and tier-3 cities and smaller towns, fueled by factors such as increasing urbanisation, a growing young population, rising travel and tourism, and expanding internet penetration.
Additionally, the emergence of food aggregators and the trend of increased weekend socialisation are driving demand for convenient dining options. This strategic acquisition aims to position the company to leverage the opportunities presented by this dynamic landscape and enhance our reach in these rapidly developing areas.
Speaking about the development, Deepak Agarwal, MD, Bikaji Foods International, said, “This acquisition marks a significant step in Bikaji’s 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 Bikaji’s manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space.”
To this, Ankit Sahni, Founder, The Hazelnut Factory, said, “We are delighted to join hands with Bikaji and this acquisition marks an exciting milestone for The Hazelnut Factory. With our innovative culinary offerings and Bikaji’s strong distribution network along with its operational excellence, we are well-positioned to accelerate our growth. Our vision to blend the rich tradition of artisanal sweets with global coffee culture will now reach a broader audience, creating unforgettable culinary experiences for even more customers. Our combined expertise will allow us to cater to a wider audience.”
