Bikaji Foods International has announced the acquisition of a 55% equity stake in Ujjain-based, Ariba Foods for ₹60.49 crore. With this acquisition, Ariba Foods will become a subsidiary of Bikaji Foods.
The acquisition will be completed within 90 days, wherein Bikaji Foods will acquire 55% of the total issued and paid-up equity share capital upon closing of the transaction.
Ariba Foods, based in Ujjain, MP, manufactures and sells a variety of snacks under the “InDine” brand. The company also provides contract manufacturing services. With operations spanning manufacturing, marketing, distribution, and sales, Ariba offers a wide range of products including snacks, savouries, and frozen foods such as samosas, naans, parathas, and sweets.
The acquisition comes at a pivotal moment as the frozen food sector experiences rapid growth driven by technological advancements. With a positive growth perspective, the industry is set to leverage these innovations to meet increasing consumer demand and expand its market presence. Intensive Softshare Private Limited, a Mumbai-based investor with a strong focus in the Indian consumer industry is the sole syndicator and advisor to the deal.
In a stock filing, Bikaji Foods said, “This acquisition is a part of overall strategy to develop and expand Frozen snacks and sweets business of BFIL both in India and global. BFIL will partly shift its current Frozen snacks and savories manufacturing to the Ariba Foods’s manufacturing facility located at Ujjain, Madhya Pradesh. This strategic decision will also strengthen our Quick Service Restaurant (QSR) business by integrating comprehensive back end operational support from Ariba Foods.”
In a stock filing, Bikaji Foods said, “The Board of Directors of the company at their meeting held on Friday, August 23, 2024, have considered and approved to make a strategic investment of RS 60.49 Crore in Ariba Foods Private Limited for the acquisition of 55% of total issued and paid-up equity share capital.”
Incorporated in October 2012, Ariba Foods reported an increase of 58% in profit to Rs 46 lakh in FY23. The company’s turnover was Rs 38.43 crore in FY 2022-23. It has a presence in India and exports its products to international markets including the USA, Canada, UK, Australia, New Zealand, Singapore, and several other countries. Export sales contribute to approximately 50% of Ariba Foods’s turnover. In 2017, Ariba was honoured with the ‘Start-Up of the Year’ award by the Hon. Chief Minister of Madhya Pradesh.
“We are thrilled to announce our acquisition of a 55% stake in Ariba Foods Private Limited. This strategic move not only strengthens our capacity for export growth but also supports our entry into the QSR segment. By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savouries manufacturing,” said Deepak Agarwal, Managing Director of Bikaji Foods International Limited.
Gaurav Baheti, Promoter of Ariba Foods Private Limited, said, “This acquisition marks an exciting milestone for Ariba Foods. With our advanced production facilities and export expertise, we are well-positioned to meet Bikaji’s production needs. Our strategic location and state-of-the-art manufacturing capabilities will enable us to drive significant growth in the frozen food category together.”
Bikaji Foods International is India’s third-largest ethnic snacks company and the leading producer of Bikaneri Bhujia, with an annual production of 41,369 tonnes in FY24. Since 1993, Bikaji has been revolutionizing Indian snacks with innovative products. The brand enjoys extensive market reach across 25 states and 4 union territories as of March 31, 2024, offering a diverse range of products including bhujia, namkeens, packaged sweets, papad, western snacks, and frozen foods.
