Bikaji Foods International has completed a deal to buy a majority stake in Indian peer Ariba Foods.
The deal, which sees Bikaji Foods snap up a 55% equity stake in Ujjain-based Ariba Foods, was completed for a fee of Rs604.9m ($7.2m).
Bikaji Foods said in a filing with the National Stock Exchange of India (NSE) today (23 August) the investment will allow it “to enhance its frozen food production capabilities and expand its market presence”.
The company revealed its intentions to buy Ariba Foods earlier this month.
Based in Indore, Madhya Pradesh, Ariba Foods’ frozen portfolio includes mixed vegetables, vegetarian and non-vegetarian burgers, paratha, samosa and roti.
Like Bikaji Foods, Ariba Foods also produces Indian snacks and sweets. It supplies the retail and foodservice channels.
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Bikaji Foods, which claims to be the third-largest Indian snacks maker in the country, said the acquisition comes at a “pivotal moment as the frozen food sector experiences rapid growth driven by technological advancements”.
It added: “With a positive growth perspective, the industry is set to leverage these innovations to meet increasing consumer demand and expand its market presence.”
Jaipur, Rajasthan-based Bikaji Foods is primarily focused on products such as bhujia spicy snacks, namkeen savoury snacks, potato chips and papads.
Set up in 1987, it supplies 23 of the 28 Indian states and four of the so-called union territories out of the eight across the country.
“This strategic move not only strengthens our capacity for export growth but also supports our entry into the QSR segment. By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savouries manufacturing,” Deepak Agarwal, managing director of Bikaji Foods, said.
Last year, Bikaji Foods took a 49% stake in fellow Indian snacks maker and start-up Bhujialalji.
Set up in 2021, Bhujialalji supplies branded products such as bhujia, a 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.
In 2019, Bikaji Foods attracted interest from new investors.
A fund under the umbrella of Indian financial services group Avendus Asset Management took a minority stake in Bikaji Foods from private-equity firm Lighthouse and another investor, Intensive Softshare.
