Subsequent to the acquisition, Bhujialalji Private Limited will become an associate to the company
Mumbai: Bikaji Foods International Ltd. has acquired a 49% stake and 396 Compulsorily Convertible Debentures (CCDs) in Bhujialalji Pvt. Ltd., an upcoming company in the ethnic snacks industry, the company announced on Wednesday.
“Our strategic vision for this collaboration is to leverage synergies that enhance the overall market position Bikaji, while continuing to function independently. With the company strategically headquartered in Bikaner, this acquisition will help us leverage the learnings of this new brand to enable accelerated growth and expand our horizon when it comes to a new audience set,” said Deepak Agarwal, managing director, Bikaji Foods International Ltd.
On the occasion, Jai Agarwal, promoter, Bhujialalji Pvt. Ltd. said, “We are hoping to geographically expand our current market base, ranging from e-commerce to modern trade channels.”
The deal comprised the purchase of 9,608 equity shares and 396 CCDs at Rs 5,100 value per security aggregating to Rs 5.10 crore at a face value is Rs 10 per equity share.
Bhujialalji Pvt. Ltd. (BPL) is a new entrant into this industry with a product portfolio comprising bhujia and namkeen variants.
The acquisition comes at a time when India’s organised snacks business is currently valued at Rs 4,240 billion. In fiscal 2015, the packaged food retail revenue was worth Rs 2,434 billion and registered a CAGR (compound annual growth rate) of approximately 8.3% from fiscal 2015 to fiscal 2022. It is estimated to grow at a CAGR of 8% in the next five years to reach Rs 5,798 billion, according to a Frost & Sullivan report. Indian Savoury Snacks market is valued at Rs 751 billion in 2022 and is expected to reach Rs1,227 billion by 2026 at a CAGR of 13%.
Snacks company, Bikaji is a leading manufacturer of Bikaneri Bhujia with an annual production of 35,588 tonnes in fiscal year 2023. The Bikaji brand has visibility across 23 states and 4 union territories as of 31 March 2023 and is present across bhujia, namkeens, packaged sweets, papad, western snacks and frozen food.
Headquartered in Bikaner, Bhujialalji Pvt. Ltd. has a portfolio of over 14 products with an annual packaging capacity of 5000 metric tonnes. The brand is currently available on online platforms for e-commerce and quick commerce, along with some modern trade retail chains.
