INDIA – Britannia Industries, the renowned biscuit, dairy, and bakery products maker, is in talks to acquire a majority stake in Kishlay Foods, a Guwahati-based company known for its diverse range of snacks, biscuits, sweets, potato chips, noodles, and tea.
According to a report by The Economic Times, the deal, valued at an estimated Rs 600-700 crore (approximately US$71.5 million—US$83.4 million), is currently in the due diligence phase.
Kishlay Foods, established in 2001 by Sandeep Bajaj and Krishna Bajaj, started as a biscuit manufacturer and has grown into one of the leading snack food producers in Northeast India.
The company offers popular brands such as Non-Stop, Kishlay, and Mamooz. According to a report by Tracxn, Kishlay Foods generated an annual revenue of Rs 350 crore (approximately US$41.6 million) for the financial year ending March 2023.
If the negotiations are successful, Britannia, under the control of Nusli Wadia, will secure a strong foothold in the Northeast market and expand into categories like noodles and tea, where it currently lacks presence.
The acquisition comes as the snacks market expands at a double-digit pace and competition from regional and direct-to-consumer brands intensifies significantly.
“Many well-established companies have been exploring acquisitions of regional brands, but several deals have been delayed due to disagreements over valuations,” said an executive quoted in the report.
During the pandemic, regional brands faced production setbacks due to supply chain disruptions but have since bounced back, benefiting from lower commodity costs and improved last-mile delivery through quick commerce platforms.
Kishlay Foods, which secured US$15 million in its last funding round led by Norwest Venture Partners in 2018, operates an extensive distribution network across Northeast India. The company serves 46 million consumers through more than 200,000 retail touchpoints.
The company’s website stated, “We are slowly expanding our distribution to the rest of India. “
Britannia, which posted a 3.74 percent year-on-year sales growth for the quarter ending June, with revenues reaching Rs 3,967.38 crore (US$472.5 million) continues to focus on scaling its domestic and international operations.
In 2022, the company acquired a majority stake in Kenya-based Kenafric Biscuits to strengthen its African presence.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
