SUMMARY
The deal comprised 9,608 equity shares and 396 CCDs at INR 5,100 value per security aggregating to INR 5.10 Cr
BhujiaLalji sells its products via dealerships across Rajasthan, Maharashtra and West Bengal, along with online channels such as Amazon and Flipkart
Off the back of the acquisition, Bikaji’s share price soared to a 52-week high at INR 468.95 on the BSE on Wednesday (July 19), touching upper circuit
India’s largest ethnic snacks brand, Bikaji Foods, has acquired a 49% stake in the Bikaner-based Indian snacks brand BhujiaLalji in a deal worth INR 5.1 Cr, the listed food conglomerate’s filings with the bourses showed.
The deal comprised 9,608 equity shares and 396 CCDs at INR 5,100 value per security aggregating to INR 5.10 Cr. The face value is INR 10 per equity share.
Founded in 2021 by Jai Agarwal, BhujiaLalji offers ready-to-eat baked and fried ethical Indian snacks, including namkeen and bhelpuri, among others. BhujiaLalji has a portfolio of more than 14 products in all, with an annual packaging capacity of 5,000 metric tonnes.
For some context on the two-year-old startup’s scale, it is already doing nearly 15% of the annual production as Bikaji (35,588 metric tonnes in FY23).
The company sells its products via dealerships across Rajasthan, Maharashtra and West Bengal, along with online channels such as Amazon and Flipkart. According to Bikaji’s filing, BhujiaLalji earned a revenue of INR 18.08 Cr in FY23, along with a loss after tax of INR 2.67 Cr.
Agarwal, founder and promoter of BhujiaLalji, said on the acquisition, “We are grateful to have this support from a market leader like Bikaji so early in our journey. This collaboration opens new doors for us, allowing us to learn and grow while preserving our brand salience. We are hoping to geographically expand our current market base, ranging from e-commerce to modern trade channels.”
Deepak Agarwal, MD, Bikaji Foods, added, “This marks a small step in our big growth plans and we are confident that there is no fear of brand cannibalisation; in fact, multiple companies across the globe operate similarly.”
The Bikaji MD added that BhujiaLalji will continue to operate independently while enhancing the overall market position of the parent brand. “With the company strategically headquartered in Bikaner, this acquisition will help us leverage the learnings of this new brand to enable accelerated growth and expand our horizon when it comes to a new audience set,” he added.
Off the back of the acquisition, Bikaji’s share price soared to a 52-week high at INR 468.95 on the BSE on Wednesday (July 19), touching the upper circuit. The snacks brand also saw a surge of more than 10X in its share trade volume during the early hours of trading on Wednesday after the acquisition announcement was made.
The Indian snacktionary business is currently valued at INR 4.24 Lakh Cr, doing a revenue of INR 2.43 Lakh Cr and has registered a CAGR of approximately 8.3% from FY15 to FY22. It is estimated to grow at a CAGR of 8% in the next five years to reach INR 5.8 Lakh Cr, according to a Frost & Sullivan report.
At the same time, the Indian savoury snacks market is valued at INR 75,100 Cr in 2022 and is expected to reach INR 1.22 Lakh Cr by 2026 at a CAGR of 13%.
