Bikaji Foods Acquires 53% Of Hazelnut Factory For Rs. 131 Crore!

Bikaji Foods International, an Indian snack brand, plans to buy the majority of Hazelnut Factory Food Products, a local cafe and artisanal sweets business. Bikaji plans to pay Rs1.31 billion ($15.6 million) in segments over the following two years for a 53.02% stake.

The Hazelnut Factory was established in December 2019 and headquartered in Lucknow. The company offers cafés across Uttar Pradesh and Delhi. It also distributes its items online and via food aggregator websites.

Bikaji Foods International is India's third largest ethnic snack firm with a global presence, providing Indian snacks and sweets and ranking among the fastest growing companies in the Indian organised foods market.

Bikaji Foods claimed that the investment will be made in portions and is scheduled to be completed within the next two years. Bikaji's acquisition seeks to develop a 'House of Brands' to cater to individual client tastes and preferences, as well as to promote Bikaji as a prominent player in the quick service restaurant (QSR) area.

This move is consistent with the growing trend of Indian native cafes expanding their footprint, while foreign firms like Belgian bakery Le Pain Quotidien, French patisserie Ladurée, Reliance-backed Armani/Caffè, Pret a Manger, and Canada's Tim Hortons are progressively entering the Indian market.

Deepak Agarwal, MD of Bikaji Foods International said, “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 bakery segment. By integrating THF’s premium offerings and Bikaji’s manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space.”