Bikaji Foods International Limited, a major Indian ethnic snack brand, is entering the Quick Service Restaurant (QSR) sector. Its subsidiary, Bikaji Foods Retail Limited (BFRL), will invest Rs 131.01 crore to buy a 53.02% stake in Lucknow-based café and sweets brand, Hazelnut Factory Food Products Private Limited (The Hazelnut Factory).
Bikaji aims to diversify into artisan bakery and café-style items
The investment will happen in stages over the next two years, marking Bikaji’s move into premium bakery and café products to meet changing consumer tastes in India’s retail market. This acquisition would help Bikaji diversify its products into artisan bakery products and café-style food items. The Hazelnut Factory has six stores in Lucknow, one store in Kanpur, and one in Delhi, providing specialty coffee, artisanal sweets, as well as several bakery and café products.
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According to Indian Retailer.com, Deepak Agarwal, MD of Bikaji Foods International mentioned in a media release, “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 the bakery segment. By integrating The Hazelnut Factory’s premium offerings with Bikaji’s manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space.”
The Hazelnut Factory eyes growth through Bikaji networks
This acquisition helps Bikaji build a “House of Brands,” offering cross-selling opportunities, a wider customer base, and a bigger market presence. Ankit Sahni, Founder of The Hazelnut Factory, said, “With our innovative culinary offerings and Bikaji’s strong distribution network and operational excellence, we are well-positioned to accelerate our growth.”
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This move comes as India’s QSR segment grows quickly. Urbanisation, a young population, and food aggregators are driving this growth in tier-2 and tier-3 cities. With the Hazelnut Factory acquisition, Bikaji aims to tap into this fast-growing market.
