Bikaji to acquire majority stake in Hazelnut Factory for Rs 131 crore

Bikaji Foods International (Bikaji), one of India’s largest ethnic snacks brands, announced on Wednesday that its wholly owned subsidiary, Bikaji Foods Retail, will make a strategic investment of Rs 131.01 crore for a 53.02 per cent stake in Hazelnut Factory Food Products, a café-cum-artisanal sweets brand based in Lucknow.

This investment will be made in tranches and is expected to be completed over the next two years, the company said in a stock exchange filing.

Through this acquisition, Bikaji aims to establish a House of Brands to cater to diverse customer tastes and preferences and position itself as a key player in the quick service restaurant (QSR) domain.

 

“This 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. The Hazelnut Factory is an established café-cum-artisanal sweets brand with a retail presence in six stores in Lucknow and one store each in Kanpur and Delhi,” the filing stated.

Hazelnut Factory Food Products offers specialty coffee, artisanal sweets, bakery and patisserie items, along with a range of café menu options.

The acquisition of The Hazelnut Factory will enhance Bikaji’s House of Brands by providing cross-selling opportunities, flexible menu offerings, a diverse customer base, a diversified brand portfolio, shared facilities and resources, and increased market presence.

Deepak Agarwal, managing director of Bikaji Foods International, said, “This acquisition marks a significant step in Bikaji’s journey to expand beyond traditional ethnic snacks and enter the retail QSR, premium artisanal sweets, and bakery segments. This strategic 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 the premium offerings of The Hazelnut Factory with Bikaji’s manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space.”