The investment will be done in tranches and is expected to be completed in the next two years
As a part of overall strategy to develop and expand its quick service restaurant (QSR) business vertical, Bikaji Foods International has acquired a 53.02 per cent stake in Hazelnut Factory Food Products, a Café cum Artisanal sweets brand originating from Lucknow, through its subsidiary, Bikaji Foods Retail (BFRL).
As per the stock exchange filing made by the BFRL, the investment will be done in tranches and is expected to be completed in the next two years. Through this acquisition worth Rs 131.01 crore, Bikaji aims to set up a House of Brands to cater to unique customer tastes and preferences. This acquisition will enable Bikaji to expand its product portfolio into the premium bakery and patisserie segment, while also incorporating various café offerings.
“This acquisition marks a significant step in Bikaji’s journey to expand beyond traditional ethnic snacks and enter into retail QSR, premium artisanal sweets and bakery segment. 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’,” stated Deepak Agarwal, Managing Director (MD) of Bikaji Foods International.
The Hazelnut Factory has stores in Lucknow, apart from one store each in Kanpur and Delhi. The brand offers specialty coffee, Handmade sweets, a bakery, and patisserie, along with a range of cafe menu items. Sahni said that as a part of its expansion mode, THF is coming up with outlets at Aerocity in Delhi, apart from Agra, Varanasi and Prayagraj.
Ankit Sahni, founder of the Hazelnut Factory said that this acquisition not only marks a milestone for THF, but also puts a limelight on homegrown brands from UP. “The fact that a listed company is joining hands with us adds to the value of THF. We have always worked to give the best to our customers and this new milestone will help us take this journey to the next level,” said Sahni.
Sahni further added that this acquisition also gives a boost of the young entrepreneurs of UP. “With this, the young entrepreneurs who want to go big and are looking for investment get a major boost. THF has always been a brand that has grown with customer love and support and this trust has led our journey to achieve this milestone.”
The acquisition comes at a time when the QSR segment is witnessing rapid growth and an increased store presence in tier-2 and tier-3 cities and smaller towns, fuelled by factors such as increasing urbanisation, a growing young population, rising travel and tourism, and expanding internet penetration.
