Bikaji Foods jumps 7% after buying 49% stake in Bhujialalji

economictimes.indiatimes.com:

Bikaji Foods International were up nearly 7% intraday after the company acquired a 49% stake in Bhujialalji, an upcoming company in the ethnic snacks industry. The stock was last trading at Rs 445, up over 4% from the previous close. The deal comprised 9,608 equity shares and 396 CCDs at Rs 5,100 value per security aggregating to Rs 5.10 crore.

The face value is Rs. 10 per equity share. Bhujialalji is a new entrant to this industry with its product portfolio comprising popular Bhujia and namkeen variants.

«This marks a small step in our big growth plans and we are confident that there is no fear of brand cannibalisation; infact, multiple companies across the globe operate similarly,» said Deepak Agarwal, MD, Bikaji Foods. Through the acquisition, the company seeks to leverage synergies that enhance the overall market position of Bikaji, while continuing to function independently. «With the company strategically headquartered in Bikaner, this acquisition will help us leverage the learnings of this new brand to enable accelerated growth and expand our horizon when it comes to a new audience set.

Our vision is to reach every household in India and this is our small step towards the big growth plans,» Agarwal further said. The acquisition comes at a time when India’s organised snacks business is currently valued at Rs 4.24 lakh crore. It has grown significantly in the last five years on account of changing lifestyles, rising incomes, and urbanization.

In FY15, the packaged food retail revenue was worth Rs 2.43 lakh crore and registered a CAGR of approximately 8.3% till FY22. It is estimated to grow at a CAGR of 8% in the next five years to reach Rs 5.7 lakh crore, according to a Frost & Sullivan report. Meanwhile, the Indian