INDIA – Bikaji Foods International has confirmed the acquisition of a 55% equity stake in Ariba Foods, a local snacks manufacturer based in Ujjain, Madhya Pradesh.
The deal, valued at ₹60.49 crore (US$7.2 million), was finalized on August 23, 2024. This strategic acquisition marks a significant step for Bikaji Foods, which aims to enhance its frozen food production capabilities and broaden its market reach.
The announcement was made public by filing with the National Stock Exchange of India. Bikaji Foods highlighted that the investment would allow the company to capitalise on the growing demand for frozen foods.
“This strategic move not only strengthens our capacity for export growth but also supports our entry into the Quick Service Restaurant (QSR) segment,” stated Deepak Agarwal, Managing Director of Bikaji Foods.
He emphasized that integrating Ariba’s advanced production capabilities would significantly boost their frozen snacks and savouries manufacturing.
Ariba Foods specialises in frozen products, including mixed vegetables, vegetarian and non-vegetarian burgers, parathas, samosas, and rotis.
The company has established a solid presence in retail and food service channels, making it a valuable addition to Bikaji’s portfolio.
Gaurav Baheti, the promoter of Ariba Foods, expressed enthusiasm about the acquisition, stating, “With our advanced production facilities and export expertise, we are well-positioned to meet Bikaji’s production needs.”
This acquisition aligns with the broader trend of increasing consumption in the frozen food sector, which has seen rapid growth due to technological advancements.
Bikaji Foods, recognized as the third-largest snacks maker in India, has been proactive in expanding its operations.
The company, which has been in business since 1987, distributes its products across 23 of the 28 Indian states and four union territories. It focuses on popular items such as bhujia, namkeen, potato chips, and papads.
Bikaji’s recent acquisition follows its 49% stake purchase in another Indian snacks startup, Bhujialalji, last year.
This move reflects the company’s strategy to diversify its offerings and strengthen its position in the competitive snacks market.
“By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savories manufacturing,” Agarwal reiterated, highlighting the importance of this acquisition for future growth.
The frozen food market in India is poised for significant expansion, driven by changing consumer preferences and an increasing inclination towards convenience foods.
As the sector evolves, Bikaji Foods is strategically positioned to leverage these trends, aiming to grow its frozen export market to ₹100 crore (US$11.92 million).
This acquisition enhances their product line and reinforces their commitment to meeting the rising consumer demand for diverse and high-quality frozen food options.
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