Bikaji Foods Expands with New Subsidiary in Food Retail and Catering

Bikaji Foods International Limited (BFIL) has announced that the Ministry of Corporate Affairs (MCA) has granted approval for the incorporation of its wholly-owned subsidiary, Bikaji Foods Retail Limited (BFRL). The subsidiary was officially incorporated on Friday, September 20, 2024, and aims to significantly enhance Bikaji’s business expansion efforts, particularly in the fast-growing food and beverage sector.

Bikaji Foods Retail Limited (BFRL) is a wholly-owned subsidiary of BFIL, incorporated with an authorized share capital of ₹1,00,000, divided into 10,000 equity shares with a face value of ₹10 per share. The paid-up share capital also amounts to ₹1,00,000, with BFIL holding 100% of the equity shares, making BFRL a wholly-owned subsidiary.

BFRL will focus on pursuing new business opportunities within the Fast-Moving Consumer Goods (FMCG) industry, specifically targeting the food and beverage sector. The subsidiary will engage in owning, managing, and operating a variety of food-related businesses, including cafés, restaurants, quick-service restaurants (QSRs), food chains, travel catering services, kiosks, mobile food stations, and canteens. Additionally, BFRL will explore opportunities to invest in other organisations with similar objectives, thereby contributing to the diversification strategy of Bikaji Foods.

The establishment of BFRL presents a significant strategic opportunity for BFIL to expand its footprint into the food retail and catering sectors, aligning with its long-term goal of diversification. By venturing into cafés, QSRs, and other food service businesses, BFRL will allow Bikaji to tap into new customer segments and capitalise on the increasing demand for fast-casual and convenient dining options in India. This new business venture will complement BFIL’s existing portfolio, enabling the company to offer a wider range of products and services.

As BFRL is a wholly-owned subsidiary of BFIL, it has become a related party under Section 188 of the Companies Act, 2013, and Regulation 23 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This ensures that the business relationship between BFIL and BFRL is conducted on an arm’s length basis. Additionally, Mr Deepak Agarwal and Mrs Shweta Agarwal, who are part of the promoter group of BFIL, are also directors of BFRL.

BFRL’s focus on the food retail and service sector positions it within the broader Fast-Moving Consumer Goods (FMCG) industry, a key driver of India’s consumer market. By diversifying into food catering and quick-service outlets, BFRL aims to create value and meet the rising demand for quality food services, while staying within the core business lines of its parent company, BFIL.

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