Bikaji Foods acquires 55% stake in Ariba Foods for Rs 60.49 crore

Bikaji Foods International Ltd on Friday acquired a 55% stake in Madhya Pradesh-based Ariba Foods Pvt Ltd for Rs 60.49 crore.

In a stock filing, Bikaji Foods said, "The Board of Directors of the company at their meeting held on Friday, August 23, 2024, have considered and approved to make a strategic investment of RS 60.49 Crore in Ariba Foods Private Limited for the acquisition of 55% of total issued and paid-up equity share capital".

With this acquisition, Ariba Foods will become a subsidiary of Bikaji Foods.

According to Bikaji Foods, the acquisition is a part of an overall strategy to develop and expand the frozen snacks and sweets business of the company.

"BFIL will partly shift its current frozen snacks and savories manufacturing to Ariba Foods’s manufacturing facility located at Ujjain, Madhya Pradesh. This strategic decision will also strengthen our Quick Service Restaurant (QSR) business by integrating comprehensive back-end operational support from Ariba Foods," Bikaji Foods said in a BSE filing.

The acquisition will be completed within 90 days, wherein Bikaji Foods will acquire 55% of the total issued and paid-up equity share capital upon closing of the transaction.

Ariba Foods is engaged in the business of manufacturing and selling snacks under the brand name ‘InDine’. Incorporated in October 2012, Ariba Foods reported an increase of 58% in profit to Rs 46 lakh in FY23. The company's turnover was Rs 38.43 crore in FY 2022-23.

It has a presence in India and exports its products to international markets including the USA, Canada, UK, Australia, New Zealand, Singapore, and several other countries. Export sales contribute to approximately 50% of Ariba Foods’s turnover.

Ariba Foods was honored with the ‘Start-Up of the Year’ award by Madhya Pradesh Chief Minister in 2017.