Indian snacks company Bikaji Foods International is to acquire the majority of Hazelnut Factory Food Products, a local café and artisanal sweets business.
Hazelnut Factory Food Products, also known as The Hazelnut Factory, specialises in bakery and patisserie products.
Set up in December 2019 and based in Lucknow, the company operates cafés in Uttar Pradesh and Delhi. It also sells its products online and through food aggregator platforms.
Bikaji is to pay Rs1.31bn ($15.6m) in tranches over the next two years for a 53.02% stake.
The company has a strategy of forming a "house of brands". Bikaji believes it can create cross-selling opportunities, a diverse customer base and boost its market presence.
In a statement, the company said the move “comes at a pivotal moment”, with India’s QSR seeing “rapid growth”. Urbanisation, rising travel and expanding internet access are driving the market in smaller cities, it said.
Bikaji Foods International MD Deepak Agarwal added: “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.
“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.”
The Hazelnut Factory has six stores in Lucknow and one each in Kanpur and Delhi. Bikaji said the deal would help it expand its product portfolio into the "premium bakery and patisserie segment". The Hazelnut Factory generated a turnover of Rs448.5m in the year to the end of March.
Ankit Sahni, The Hazelnut Factory's founder, said: “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. Our combined expertise will allow us to cater to a wider audience.”
The deal follows Bikaji Foods’ recent acquisition of a 55% equity stake in India-based frozen-food business Ariba Foods for Rs604.9m.
Ariba Foods, based in Madhya Pradesh, offers a frozen product range, catering to the retail and foodservice channels.
