Indian snacks manufacturer Bikaji Foods International is set to acquire a majority stake in Hazelnut Factory Food Products, a prominent local café and artisanal sweets establishment.
Hazelnut Factory Food Products, known as The Hazelnut Factory, specializes in bakery and patisserie goods. Established in December 2019 and based in Lucknow, the company operates cafés across Uttar Pradesh and Delhi. Additionally, it markets its products through online platforms and food aggregators.
Bikaji Foods will invest Rs1.31 billion ($15.6 million) in multiple installments over the next two years to secure a 53.02% ownership in the company. This acquisition aligns with Bikaji’s strategy of building a “house of brands,” which they believe will create cross-selling opportunities, broaden their customer base, and enhance market presence.
In a recent statement, Bikaji emphasized that this acquisition “comes at a pivotal moment,” as the quick service restaurant (QSR) sector in India experiences “rapid growth.” The increasing urbanization, growing travel trends, and expanding internet access are crucial drivers stimulating the market in smaller cities.
Bikaji Foods International’s Managing Director, Deepak Agarwal, noted, “This acquisition marks a significant step in Bikaji’s journey to expand beyond traditional ethnic snacks and enter into retail QSR, premium artisanal sweets, and the bakery segment.” He added that the integration of The Hazelnut Factory’s premium offerings with Bikaji’s manufacturing strengths aims to cater to diverse tastes, positioning Bikaji as a vital player in the QSR landscape.
The Hazelnut Factory boasts six locations in Lucknow, along with one store each in Kanpur and Delhi. Bikaji sees this deal as an opportunity to broaden its product range into the “premium bakery and patisserie segment.” The Hazelnut Factory recorded a turnover of Rs448.5 million for the fiscal year ending in March.
Founder of The Hazelnut Factory, Ankit Sahni, stated: “Our vision to blend the rich tradition of artisanal sweets with global coffee culture will now reach a broader audience, creating unforgettable culinary experiences for even more customers. Our combined expertise will allow us to cater to a wider audience.”
Furthermore, this acquisition follows Bikaji Foods’ recent purchase of a 55% equity stake in Ariba Foods, based in Madhya Pradesh, for Rs604.9 million. Ariba Foods provides a range of frozen products targeting both retail and foodservice markets.
In conclusion, with this strategic acquisition, Bikaji Foods aims to leverage food and beverage industry trends, enhancing its footprint in the food and drink business to meet evolving food and drink consumer trends.
