Bikaji Foods International has taken a 49% stake in fellow Indian snacks maker and start-up Bhujialalji.
The deal by Bikaji Foods, which claims to be the third-largest Indian snacks maker in the country, also includes convertible debt securities, according to a stock-exchange filing yesterday (19 July) from the Jaipur, Rajasthan-based company.
Bhujialalji was set up in 2021 and supplies branded products such as bhujia, a popular fried and spiced snack originating from Bikaner, in Rajasthan. It serves the e-commerce channel and so-called quick commerce, a delivery service common in India, and also select retail.
Deepak Agarwal, Bikaji Foods’ managing director, said: “This marks a small step in our big growth plans and we are confident that there is no fear of brand cannibalisation. Our strategic vision for this collaboration is to leverage synergies that enhance the overall market position of Bikaji, while continuing to function independently.”
Like Bhujialalji, Bikaji Foods produces namkeen, a broad term for spiced and/or salty and savoury Indian snacks, as well as bhujia, western snacks, papads, confectionery and cookies. It supplies 23 of the 28 Indian states and four of the so-called union territories out of the eight across the country.
Jai Agarwal, a director at Bhujialalji and also the owner of Papadmalji Agro Foods, said: “We are grateful to have this support from a market leader like Bikaji so early in our journey. This collaboration opens new doors for us, allowing us to learn and grow while preserving our brand salience. We are hoping to geographically expand our current market base, ranging from e-commerce to modern trade channels.”
Another local Indian snacks company, Haldiram’s Group, announced in April it was separating its business units into a new entity.
Haldiram’s Snacks Food would be formed through the demerger of Haldiram’s Snacks and Haldiram’s Foods from the group, it said. Both companies manufacture and distribute packaged food products, including namkeen, frozen foods and non-carbonated ready-to-drink beverages.
