The investment will be made in tranches, with the acquisition expected to be completed over the next two years, according to the company’s stock exchange filing.
Through this acquisition, Bikaji aims to build a ‘House of Brands’ catering to diverse customer preferences and strengthening its position in the quick service restaurant (QSR) segment.
“This acquisition will enable Bikaji to expand its product portfolio into the premium bakery and patisserie segment, while also incorporating various café offerings to meet evolving consumer preferences. The Hazelnut Factory is an established café-cum-artisanal sweets brand with a retail presence in six stores in Lucknow and one store each in Kanpur and Delhi,” the filing stated.
Hazelnut Factory Food Products offers specialty coffee, artisanal sweets, bakery and patisserie items, along with a range of café menu options.
The acquisition of The Hazelnut Factory will enhance Bikaji’s House of Brands by providing cross-selling opportunities, flexible menu offerings, a diverse customer base, a diversified brand portfolio, shared facilities and resources, and increased market presence.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 the retail QSR, premium artisanal sweets, and bakery segments. This strategic move not only marks our entry into the high-growth QSR sector but also aligns with our vision to build a ‘House of Brands’. By integrating the premium offerings of The Hazelnut Factory with Bikaji’s manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space.”On Wednesday, Bikaji’s shares closed at Rs 910.3, up 3.2% on the BSE, while the benchmark Sensex fell 0.39%. Its shares have surged 67% in 2024 to date and 85% over the past 12 months, with the company currently holding a market capitalization of Rs 22,793 crore.
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