Bikaji Foods acquires 49% stake in Bhujialalji for Rs 5 crore

Bikaji Foods International, an ethnic snacks company, has announced the acquisition of a 49% stake and 396 compulsorily convertible debentures (CCDs) in Bhujialalji Private Limited (BPL), according to a recent stock exchange filing. Bhujialalji, a newcomer to the industry, boasts a varied product offering that includes popular Bhujia and a variety of namkeen options.

Deepak Agarwal, the Managing Director of Bikaji Foods International, expressed the strategic aim behind this collaboration. He highlighted the goal to enhance Bikaji's overall market standing through mutual benefits while maintaining independent operations. He also stated that the acquisition, with Bhujialalji strategically located in Bikaner, would enable Bikaji to tap into the insights of this fresh brand, fostering accelerated growth and expanding their reach to a new customer base.

The acquisition aligns with the current valuation of the organized snack industry in India at Rs 4,240 billion. The revenue from retail packaged food, which stood at Rs 2,434 billion in FY15, has observed an approximately 8.3% Compound Annual Growth Rate (CAGR) from FY15 to FY22. As per a Frost & Sullivan report, it is anticipated to continue growing at a CAGR of 8% over the next five years, culminating at Rs 5,798 billion.

Meanwhile, the Indian Savoury Snacks market was valued at Rs 751 billion in 2022. This market is projected to grow at a CAGR of 13%, reaching a substantial Rs 1,227 billion by 2026.

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