Bikaji forays into QSR segment; invests Rs 131 cr to acquire stake in The Hazelnut Factory

Bikaji Foods International Limited (Bikaji) has announced that, Bikaji Foods Retail Limited (BFRL), wholly owned subsidiary of Bikaji Foods International Limited, will make an investment of Rs 131.01 crores for an acquisition of 53.02% stake in Hazelnut Factory Food Products Private Limited (The Hazelnut Factory/ THF), a Café cum Artisanal sweets brand based in Lucknow.

As per the company, the investment will be done in tranches and is expected to be completed in next two years. Through this acquisition, Bikaji aims to set up a House of Brands to cater to unique customer tastes and preferences and establish Bikaji as a key player in the Quick Service Restaurant (QSR) domain.

Deepak Agarwal, MD of Bikaji Foods International, said, “This acquisition marks a significant step in Bikaji’s journey to expand beyond traditional ethnic snacks and enter into retail QSR, premium artisanal sweets and bakery segment. This move not only marks our entry into the high-growth QSR sector but also aligns with our vision to build a 'House of Brands'. By integrating THF's premium offerings and Bikaji’s manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space.”

Also Read: Gopal Snacks targets 15% growth in FY25, CFO eyes bright outlook for wafer biz It is expected that the acquisition will enable Bikaji to expand its product portfolio into the premium bakery and patisserie segment, while also incorporating various café offerings to meet evolving consumer preferences. It will provide cross-selling opportunities, flexible menu offerings, a diverse customer base, a diversified brand portfolio, shared facilities and resources, and increased market presence. "This acquisition marks a milestone for The Hazelnut Factory. With our culinary offerings and Bikaji's strong distribution network along with it’s operational excellence, we are well-positioned to accelerate our growth. Our vision to blend the rich tradition of artisanal sweets with global coffee culture will now reach a broader audience, creating unforgettable culinary experiences for even more customers,” Ankit Sahni, Founder, The Hazelnut Factory, added.

Also Read: Madison wins media mandate for Parag Milk Foods' Rs 100-120 cr account The acquisition comes at a pivotal moment, as the Quick Service Restaurant (QSR) segment is witnessing rapid growth and an increased store presence in tier-2 and tier-3 cities and smaller towns, fueled by factors such as increasing urbanization, a growing young population, rising travel and tourism, and expanding internet penetration.