Bikaji Foods To Acquire 53% Stake in Hazelnut Factory for Rs.131 Crore

Bikaji Foods International Ltd., one of the country’s leading Indian snacks brands, has announced expansion into the Quick Service Restaurant (QSR) segment. On Wednesday, the company confirmed plans to acquire a 53.02% stake in Hazelnut Factory Food Products Pvt. Ltd., a café-cum-artisanal sweets brand based in Lucknow. This investment is valued at Rs.131.01 crore and will be made through Bikaji Foods’ wholly-owned subsidiary, Bikaji Foods Retail Ltd.

Stepping into the QSR Space

For Bikaji, this deal marks an entry into the Quick Service Restaurant (QSR) segment. Known for its Indian snacks, Bikaji is now spreading its wings to include premium artisanal sweets, bakery items, and even café menus. Deepak Agarwal, Managing Director of Bikaji Foods, said the acquisition aligns with the company’s goal of building a “House of Brands” that caters to a wider range of customer tastes and preferences.

What’s in it for Hazelnut Factory?

Hazelnut Factory, a popular name in Lucknow with six stores in the city and branches in Kanpur and Delhi, is known for its specialty coffee, artisanal sweets, and bakery offerings. Ankit Sahni, the brand’s founder, is optimistic about the partnership. He believes Bikaji’s vast distribution network and operational strength will help Hazelnut Factory grow even faster. It’s a win-win – Hazelnut Factory gets scale, and Bikaji gets to tap into the fast-growing QSR market.

What’s Next?

Bikaji Foods, which has seen its stock rise by 66.72% this year and around 85% in the past one year, clearly has big plans. Its shares opened at Rs.926.15 per share, showing positive market response to the news. With this acquisition, Bikaji aims to broaden its portfolio and enter new markets, bringing artisanal delights to more cities.

Conclusion: In conclusion, doing this just isn’t just about expanding into cafés and sweets; it’s about Bikaji embracing new opportunities and keeping up with changing consumer preferences. How this unfolds will be interesting to watch.

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