Bikaji Foods Targets Expansion, Not for Sale
Indian snack manufacturer Bikaji Foods is not on the market for acquisition and is instead actively seeking to expand its presence in the growing savoury snacks industry in India, according to a statement from a senior executive.
The savoury snacks sector in India has seen substantial growth as consumers increasingly indulge in packaged foods. “Bikaji is not for sale, no matter the offer,” asserted Chief Operating Officer Manoj Verma earlier this month, though he did not confirm if the company had received any buyout proposals. Verma’s comments follow recent acquisition discussions involving India’s Tata Group and a consortium led by Blackstone and Singapore’s GIC with Haldiram’s, a leading player in the market.
Since Reuters reported on investor interest in Haldiram’s last September, Bikaji’s shares, majority-owned by founder Shiv Ratan Agarwal and his family, have surged approximately 67%, placing the company’s valuation at $2.55 billion. Earlier this year, Haldiram’s was also reportedly exploring the acquisition of a controlling stake in competitor Prataap Snacks.
“The snacks sector has suddenly become very competitive,” Verma noted, predicting that the entrance of major investors will intensify competition and drive further market expansion. Although discussions between Tata and Haldiram’s ended, it remains unclear if other negotiations are ongoing.
Bikaji recently acquired stakes in Bhujialalji and Ariba Foods and plans to pursue more acquisitions, particularly those that can enhance its distribution network or strengthen its foothold in the frozen food market. Verma mentioned that the company has allocated a budget of Rs 100 crore to Rs 150 crore (approximately $12 million-$18 million) for strategic acquisitions.
As the third-largest Indian snack brand, following Haldiram’s and Balaji, Bikaji aims to increase its market share by 50 basis points annually, up from its current 9%. The company anticipates a revenue growth of 16%-17% in the current fiscal year, following Rs 2,329 crore in earnings for the year ending March 31.
