Bikaji Foods inks pact to acquire 55% stake in Ariba Foods

Ariba Foods specializes in the manufacture and sale of snacks under the brand name InDine. Their product portfolio includes a range of snacks, savories, frozen foods such as samosas, naans, parathas, and sweets. Ariba Foods operates both domestically and internationally, exporting to markets in the USA, Canada, the UK, Australia, New Zealand, Singapore, and several other countries. Notably, export sales account for approximately 50% of Ariba Foods' turnover. Its turnover was Rs 38.43 crore in FY23.

The company will acquired 2,60,41,243 equity shares having face value of Rs 10 each issued at premium of Rs 13.23 per equity share aggregating amount of Rs 60,49,38,075. Ariba Foods will become a related party of BFIL

This acquisition is a part of overall strategy to develop and expand frozen snacks and sweets business of the company both in India and global. It 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 its Quick Service Restaurant (QSR) business by integrating comprehensive back end operational support from Ariba Foods.

This acquisition will also enhance the the company's backward integration and securing control over the supply of Frozen Food.

After the said acquisition Ariba Foods will become a subsidiary of the company. The said acquisition will be completed within a period of 90 days.

Bikaji Foods International is the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and is among the fastest growing companies in the Indian organised snacks market.

The snacks manufacturing company reported a consolidated net profit of Rs 116.24 crore in Q4 FY24, steeply higher than Rs 38.10 crore posted in Q4 FY23. Revenue from operations grew by 12.81% year on year to Rs 520.83 crore during the quarter.

The scrip shed 0.25% to settle at Rs 853.30 on the BSE.