Bikaji Foods International has strategically acquired a majority stake in its Indian counterpart, Ariba Foods, marking a significant move in the food and beverage industry. This acquisition gives Bikaji Foods control over a 55% equity share in Ujjain-based Ariba Foods, with the agreement finalized for a total of Rs604.9 million ($7.2 million).
In a statement to the National Stock Exchange of India (NSE) on August 23, Bikaji Foods highlighted that this investment would enhance its frozen food production capabilities and broaden its market presence. Such growth aligns with current trends in the food and drink business, where expansion and innovation are crucial for keeping pace with evolving consumer preferences.
Earlier this month, the company unveiled its plans to acquire Ariba Foods, which is based in Indore, Madhya Pradesh. Ariba Foods boasts a diverse frozen portfolio that includes mixed vegetables, burgers (both vegetarian and non-vegetarian), parathas, samosas, and rotis. Like Bikaji Foods, Ariba Foods specializes in Indian snacks and sweets, serving both retail and foodservice channels.
Bikaji Foods, claiming to be the third-largest Indian snacks manufacturer, noted that this acquisition comes at a pivotal time as the frozen food sector witnesses rapid growth fueled by technological advancements. The company reiterated its commitment to leveraging these innovations to address rising consumer demand effectively.
Deepak Agarwal, managing director of Bikaji Foods, emphasized the strategic nature of this acquisition, stating, “This strategic move not only strengthens our capacity for export growth but also supports our entry into the QSR segment. By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savouries manufacturing.”
Founded in 1987, Bikaji Foods primarily focuses on producing bhujia spicy snacks, namkeen savoury snacks, potato chips, and papads. Currently, the company services 23 of the 28 Indian states and four of the eight union territories across the nation. This recent acquisition indicates a clear intent to further penetrate the frozen food segment of the food and drink consumer trends.
In addition to the Ariba Foods acquisition, Bikaji Foods previously secured a 49% stake in fellow snacks manufacturer Bhujialalji. Established in 2021, Bhujialalji offers popular products like bhujia, a fried and spiced snack originating from Bikaner, Rajasthan. The brand caters to e-commerce channels and quick commerce delivery services, underlining the ongoing transformation within the foodservice sector.
As the food and beverage industry continues to evolve, driven by changing consumer preferences and technological advancements, Bikaji Foods is well-positioned for growth and innovation. This acquisition and the company’s proactive strategy reflect a commitment to strengthening its market position in an increasingly competitive landscape.
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