Bikaji Foods International Limited (Bikaji) has announced a strategic investment through its wholly-owned subsidiary, Bikaji Foods Retail Limited (BFRL), to acquire a controlling stake of 53.02% in Hazelnut Factory Food Products Private Limited (THF), a café and artisanal sweets brand based in Lucknow. The investment is valued at ₹131.01 crore and will be made in tranches over the next two years.
This acquisition marks Bikaji’s entry into the Quick Service Restaurant (QSR) and premium bakery & patisserie segment. The company aims to diversify its product offerings and expand its footprint in the high-growth QSR market.
Key Details of the Investment:
- Stake Acquired: 53.02% in The Hazelnut Factory (THF), done in tranches.
- Investment Amount: ₹131.01 crore, with ₹61 crore invested in the first tranche, expected to be completed by November 30, 2024.
- Strategic Goals: Expand Bikaji’s presence in the QSR sector, incorporating THF’s premium café offerings and artisanal products to build a comprehensive House of Brands.
Deepak Agarwal, Managing Director of Bikaji, highlighted the significance of this acquisition: “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’.”
The Hazelnut Factory is well-known for its specialty coffee, artisanal sweets, bakery & patisserie, and operates cafés in Lucknow, Kanpur, and Delhi.
Expansion of QSR Segment:
This acquisition comes at a pivotal time as the QSR segment is witnessing rapid growth, driven by urbanization, increasing internet penetration, and a growing young population. This partnership between Bikaji and THF is expected to significantly enhance Bikaji’s product portfolio and its reach in the premium F&B sector.
