Bikaji Foods Expands Horizons with Acquisition of Hazelnut Factory

In an exciting development for the culinary world, Bikaji Foods Retail, a prominent name in the snacks industry, has taken a bold step by acquiring a 53 percent stake in Hazelnut Factory Food Products, a delightful cafe and artisanal sweets brand based in the vibrant city of Lucknow. The acquisition deal is worth a substantial ₹131 crore.

A Strategic Move for Expansion

This investment is set to roll out in stages and is anticipated to be finalized within the next two years. With this acquisition, Bikaji has grand ambitions to establish a comprehensive House of Brands, tailored to meet the unique tastes and preferences of consumers, while solidifying its position in the Quick-Service Restaurant (QSR) sector.

Expanding the Culinary Landscape

The partnership will allow Bikaji to broaden its product offerings into the premium bakery and patisserie segments, integrating an array of cafe delights to align with shifting consumer preferences. This strategic move aligns perfectly with the company’s vision to cater to evolving tastes and desires.

About Hazelnut Factory

The Hazelnut Factory boasts an impressive presence with six stores in Lucknow, plus locations in Kanpur and Delhi. Known for its specialty coffee, handmade sweets, and delectable bakery items, the brand also offers a diverse cafe menu that appeals to a wide range of palates.

Leadership Insights

Deepak Agarwal, the Managing Director of Bikaji Foods International, emphasized that this acquisition is a pivotal milestone in the company’s journey, allowing it to transcend traditional ethnic snacks and dive into the dynamic world of QSR and premium artisanal products.

“By merging THF’s premium offerings with our robust manufacturing capabilities, we are set to embrace the unique tastes and preferences of our customers, positioning Bikaji as a leader in the QSR sector,” Agarwal explained.

A Bright Future Ahead

Ankit Sahni, Founder of The Hazelnut Factory, believes this partnership will significantly speed up growth. With innovative culinary expressions and Bikaji’s strong distribution prowess, the collaboration is poised to thrive.

Market Potential

This acquisition comes at a time when the QSR market is buzzing with growth, particularly in tier-II and -III cities as well as smaller towns. This trend is driven by urbanization, a burgeoning young population, increasing travel and tourism, and the ever-expanding reach of the internet.

Furthermore, the rise of food aggregators and a noticeable uptick in weekend socialization have amplified the demand for convenient dining options, indicating a promising future for this collaboration.