Bikaji Looks To Increase Frozen Foods Exports With Ariba Foods Acquisition
The move marks a key expansion into the frozen food sector, as part of BFIL's broader strategy.
Bikaji Foods International Ltd. has announced the acquisition of a 55% stake in Ariba Foods Pvt. for Rs 60.49 crore. The move marks a key expansion into the frozen food sector as part of BFIL's broader strategy to enhance its international presence and strengthen its portfolio.
Ariba Foods, headquartered in Indore, Madhya Pradesh, is a notable player in the fast-moving consumer goods industry, specialising in the manufacture and sale of a variety of frozen snacks and sweets.
The company's product line includes popular items like samosas, naans, parathas, and other frozen delicacies. Established with a focus on both domestic and international markets, Ariba Foods' exports contribute to about 50% of its turnover.
The acquisition will see Ariba Foods become a subsidiary of BFIL, aligning with the latter's strategic goal to bolster its frozen food division and leverage Ariba Foods' existing infrastructure and market reach. This investment is expected to facilitate a partial shift of BFIL's current frozen snacks and savoury production to Ariba Foods' facility, enhancing the efficiency of its quick service restaurant operations and ensuring better control over the supply chain, the company said in an exchange filing.
Bikaji's acquisition of a majority stake in Ariba Foods, formalised through a share subscription agreement, is set to be completed within the next 90 days. This cash consideration deal involves purchasing 2.6 crore equity shares of Ariba Foods at a premium.
Shares of Bikaji Foods were down 0.01% at Rs 854.9 per share, compared to a 0.05% gain in the Nifty 50 at 3:13 p.m.
