Bikaji Foods International acquires 49% stake in Bhujialalji for ₹5.10 crore. Share price increases by 7%. Pantomath Capital Advisors advised the deal.
Bikaji Foods International Ltd. has acquired 49% stake and 396 Compulsorily Convertible Debentures (CCDs) in Bhujialalji Pvt. Ltd., an upcoming company in the ethnic snacks industry, according to a filing to the stock exchange.
The deal comprised of 9,608 equity shares and 396 CCDs at ₹5100 value per security aggregating to ₹5.10 crore. The face value is Rs. 10 per equity share.
Bhujialalji Pvt. Ltd. (BPL) is a new entrant to this industry with its product portfolio comprising popular Bhujia and namkeen variants.
"We are happy to announce the successful acquisition of a significant 49% stake in Bhujialalji Pvt. Ltd. This marks a small step in our big growth plans and we are confident that there is no fear of brand cannibalisation; infact, multiple companies across the globe operate similarly. Our strategic vision for this collaboration is to leverage synergies that enhance the overall market position Bikaji, while continuing to function independently,"
says Mr. Deepak Agarwal, Managing Director, Bikaji Foods International Limited.
On the occasion, Jai Agarwal, Promoter, Bhujialalji Pvt Ltd said:
"We are grateful to have this support from a market leader like Bikaji so early in our journey. This collaboration opens new doors for us, allowing us to learn and grow while preserving our brand salience. We are hoping to geographically expand our current market base, ranging from e-commerce to modern trade channels.
The acquisition comes at a time when India’s organised snacktionary business is currently valued at ₹4,240 billion. It has grown significantly in last five years on account of changing lifestyles, rising incomes and urbanization. In Fiscal 2015, the packaged food retail revenue was worth ₹2,434 billion and has registered a CAGR of approximately 8.3% from Fiscal 2015 to Fiscal 2022. It is estimated to grow at CAGR of 8% in next five years to reach at ₹5,798 billion, according to a Frost & Sullivan report. Indian Savoury Snacks market is valued at ₹751 billion in 2022 and is expected to reach ₹1,227 billion by 2026 at CAGR 13%.
Source: Mint
