Friday, April 19, 2024
Outlook India
Outlook Business

Bikaji Foods Acquires 49% Stake In Bhujialalji For Rs 5.10 Crore

The transaction included 9,608 equity shares and 396 CCDs at Rs 5100 value per security, with the face value of each equity share standing at Rs 10

Bikaji Foods Acquires 49% Stake In Bhujialalji For Rs 5.10 Crore
POSTED ON July 20, 2023 11:36 AM

Bikaji Foods International Ltd. has recently completed the acquisition of a 49% stake and 396 Compulsorily Convertible Debentures (CCDs) in Bhujialalji Pvt. Ltd., an emerging player in the ethnic snacks industry. 
The transaction, as reported to the stock exchange, included 9,608 equity shares and 396 CCDs at Rs 5100 value per security, amounting to Rs 5.10 crore. The face value of each equity share stands at Rs. 10.

Bhujialalji Pvt. Ltd. (BPL) is a fresh entrant in the industry, offering a diverse product portfolio comprising popular Bhujia and namkeen variants.

"We are delighted to announce the successful acquisition of a significant 49% stake in BPL. This represents a crucial step in our ambitious growth plans, and we are confident that there will be no fear of brand cannibalisation; indeed, numerous companies globally operate with similar structures. Our strategic vision for this collaboration is to harness synergies that enhance Bikaji's overall market position while allowing BPL to continue operating independently," stated Deepak Agarwal, managing director of Bikaji Foods International Limited.

He stated that with BPL strategically headquartered in Bikaner, this acquisition will enable Bikaji to leverage the knowledge and experience of this new brand, facilitating accelerated growth and expansion to new audiences. "Our vision is to reach every household in India, and this marks our initial stride towards realising our substantial growth plans," he added. 

Jai Agarwal, promoter of BPL, stated that this collaboration opens new opportunities for the company, allowing them to learn and grow while preserving their brand salience. It aims to expand geographically within its current market base, encompassing e-commerce to modern trade channels.

India's organised snack industry is valued at Rs 4,240 billion. Over the past five years, the industry has witnessed significant growth due to shifting lifestyles, rising incomes, and urbanisation. 

In FY2015, the packaged food retail revenue was estimated at Rs 2,434 billion, registering a commendable CAGR of approximately 8.3 per cent from FY2015 to FY2022. According to a Frost & Sullivan report, it is projected to grow at a CAGR of 8 per cent in the next five years, reaching Rs 5,798 billion. The Indian savoury snacks market was valued at Rs 751 billion in 2022 and is anticipated to attain Rs 1,227 billion by 2026 at an 13 per cent CAGR.

  • Related Articles

    Gupta said it is important for people to understand that there will not be quick money and that proper procedures and checks will be followed before actual funding

    Due Diligence, Checks Integral Part Of Investing In Start-Ups: Aman Gupta On Funding Controversy

    Among the seven sharks, Namita Thapar fulfilled the maximum percentage (59 per cent) of investment commitments

    Shark Tank India Season One: Sharks Have Invested In 27 Among 65 Committed Deals, Says PrivateCircle Research

    The company has claimed that it serves customers across banking, fintech, insurance, the gig economy, and real money gaming among others

    Bureau Extends Series A Funding To $16.5 Million