Bikaji Foods purchases stake in ethnic snacks startup Bhujialalji
Bikaji Foods International, an Indian ethnic snack producer, has acquired a 49% stake and 396 Compulsorily Convertible Debentures (CCDs) in Bhujialalji Pvt. Ltd., an emerging player in India’s ethnic snacks industry based in Bikaner. The deal, worth Rs 5.1 crore, includes 9,608 equity shares and 396 CCDs, each valued at Rs 5100.
Bhujialalji, a recent entrant into the snack industry, boasts a diverse product portfolio that includes popular Bhujia and Namkeen variants. With an annual packaging capacity of 5000 metric tonnes spread across 14 products, Bhujialalji has effectively utilized both online and offline distribution channels to reach a broad customer base. Its products are currently available on various e-commerce and quick commerce platforms, as well as select modern trade retail chains.
Deepak Agarwal, Managing Director of Bikaji Foods International Limited, commented on the acquisition, stating, “This marks a small step in our big growth plans. Our strategic vision for this collaboration is to leverage synergies that enhance the overall market position of Bikaji while continuing to function independently.” Agarwal also added that he expects this acquisition to enable accelerated growth and expansion of the company’s audience.
On the occasion, Jai Agarwal, Promoter of Bhujialalji Pvt Ltd, expressed his gratitude for the support from Bikaji. He added that this collaboration opens new doors for Bhujialalji, allowing it to learn, grow and expand its current market base while maintaining its brand salience.
The acquisition comes at a time when India’s organized snack market, currently valued at ₹4,240 billion, has seen substantial growth over the last five years due to changing lifestyles, rising incomes, and urbanization. A Frost & Sullivan report predicts a CAGR of 8% in the next five years, forecasting the market to reach ₹5,798 billion. The Indian Savoury Snacks market is valued at ₹751 billion in 2022 and is expected to reach ₹1,227 billion by 2026 at a CAGR of 13%.