Bikaji Foods to invest Rs 131.01 cr for 53% stake in Hazelnut Factory for QSR segment

Snack making company Bikaji Foods International Ltd is set to enter the Quick Service Restaurant (QSR) market by investing Rs 131.01 crore to acquire a 53.02 percent stake in Hazelnut Factory Food Products Private Limited. The acquisition will be done through its wholly-owned subsidiary, Bikaji Foods Retail Ltd (BFRL).

Bikaji's investment will result in the acquisition of a 53.02% stake in Hazelnut Factory Food Products, enhancing its Quick Service Restaurant (QSR) business through a "House of Brand" strategy.

The acquisition will allow Bikaji to expand its offerings into the premium bakery and patisserie category. Hazelnut Factory Food Products, headquartered in Lucknow and boasts a turnover of Rs 44.85 crore in the fiscal year 2024, specialises in the Food and Beverage (F&B) industry, complementing BFRL's core business focus. Hazelnut Factory currently operates 6 stores in Lucknow and 1 store each in Kanpur & Delhi.

This acquisition aligns with Bikaji's broader goal of expanding and developing its QSR business vertical. In this transaction, Bikaji Foods Retail Ltd has entered into Share Subscription and Share Purchase Agreements with Hazelnut Factory Food Products and its promoters to formalize the terms of the investment.

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," the company said in an exchange filing.

Upon completion of the acquisition process, Hazelnut Factory Food Products will be considered a related party of Bikaji Foods International and Bikaji Foods Retail in accordance with regulatory standards.

Earlier in August this year, Bikaji Foods International announced the acquisition of a 55% stake in Ariba Foods Private Ltd, a Ujjain-based company renowned for its production and sale of frozen food items.

This strategic move, which was given the green light during a board meeting on August 23, 2024, signifies a significant development for Bikaji as it aims to broaden its portfolio and enhance its footprint within the fast-evolving packaged foods sector.

Bikaji Foods International Ltd's stocks ended its trading in green at Rs 908.65, up by 3.02%, on BSE.