Ethnic snacks maker Bikaji Foods International Ltd has acquired majority 53.02% stake for Rs 131 crore in Lucknow-based cafe and artisanal sweets chain Hazelnut Factory Food Products Private Ltd through its wholly-owned subsidiary, Bikaji Foods Retail Ltd (BFRL), it announced in a stock exchange filing on Wednesday.
The strategic acquisition paves the way for Bikaji’s foray in the Quick Service Restaurant (QSR) segment through its ‘House of Brand’ strategy, by enabling cross-selling opportunities, shared facilities and resources, the company said in a statement.
The development comes at a time when India is seeing a surge in home-grown cafes expanding, while global chains such as Belgian bakery Le Pain Quotidien, French patisserie chain Ladurée, Reliance Brands-backed Armani/Caffè and Pret a Manger and Canada’s Tim Hortons have made strategic forays into India.
The acquisition by Bikaji Foods, which competes aggressively with Haldiram’s, will be done in tranches and is expected to be completed over the next two years. Upon full acquisition, Hazelnut Factory Food Products will become a related party under both Bikaji Foods International and Bikaji Foods Retail under regulatory guidelines, the company said.
Deepak Agarwal, MD of Bikaji Foods International said in a statement that the acquisition marks “a significant step in Bikaji’s journey to expand beyond traditional ethnic snacks and enter into the retail QSR, premium artisanal sweets and bakery segments”.
Shares of Bikaji Foods closed Rs 908.65, up by 3.02% on the BSE on Wednesday.
The Hazelnut Factory has retail presence across six stores in Lucknow and one store each in Kanpur and Delhi, and sells specialty coffees, artisanal sweets, bakery and patisserie products, the company said.
Source: Economic Times