Bikaji says 'not for sale' amid investor interest in Indian snacks market

Bikaji Foods International

28/08/2024 06:24

By Praveen Paramasivam
       CHENNAI, Aug 28 (Reuters) - Indian snacks maker Bikaji
Foods  BIKA.NS  is "not for sale" and is instead on the prowl
itself, aiming to cash in on the growing appetite for savoury
brands in the world's most populous country, a top executive
told Reuters.
    The Indian savoury snacks sector has ballooned in recent
years as consumers splurge on packaged foods.
    "Bikaji is not for sale. Whatever price someone offers,
there are certain things that are not for sale," Chief Operating
Officer Manoj Verma said earlier this month, without disclosing
whether the company has received buyout offers.   
    His comments came after India's Tata Group and a consortium
including Blackstone and Singapore's GIC held acquisition talks
with market leader Haldiram's.
    Shares in Bikaji, which is majority-owned by founder Shiv
Ratan Agarwal and his family, have gained around 67% to value
the company at $2.55 billion since Reuters reported on investor
interest in Haldiram's last September.
    Haldiram's itself was in talks to acquire a majority stake
in peer Prataap Snacks  PRAT.NS  in January.
    "Suddenly, this has become a hot space," Verma said, adding
that he expects the entry of heavyweight investors to make the
market more competitive and fuel further growth. 
    Reuters reported in May that talks between Tata and
Haldiram's had ended, while it is not immediately clear if other
deal talks are still ongoing.   
    Bikaji, which recently bought stakes in Bhujialalji and
Ariba Foods, aims to make more acquisitions only if they could
help expand distribution or boost its presence in the
frozen-food market, he said, adding that it has a budget of 1
billion rupees to 1.5 billion rupees (around $12 million-$18
million) for the right target.
    The snacks maker, which brokerage Anand Rathi said is the
third biggest Indian snacks brand behind Haldiram's and Balaji,
is more focused on expanding its market share by 50 basis points
every year from 9% currently.
    Verma expects Bikaji's revenue to rise 16%-17% in the
current fiscal year from 23.29 billion rupees in the year ended
March 31.


($1 = 83.9330 Indian rupees)

 (Reporting by Praveen Paramasivam in Chennai; Editing by Dhanya
Skariachan and Sonia Cheema)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))