Bikaji Foods, a prominent Indian snacks manufacturer, has firmly stated its intention to remain independent while actively seeking growth opportunities in the rapidly expanding Indian savoury snacks market. This declaration comes amidst increasing investor interest in the sector, highlighting the company's commitment to its own expansion strategy.
Manoj Verma, Chief Operating Officer of Bikaji Foods, emphasized the company's stance in a recent interview, stating, > "Bikaji is not for sale. Whatever price someone offers, there are certain things that are not for sale."
This statement follows reports of acquisition talks involving industry giants such as the Tata Group and a consortium including Blackstone and Singapore's GIC with market leader Haldiram's. The heightened interest in the sector has led to a significant increase in Bikaji's market value, with shares rising approximately 67% since September 2023, valuing the company at $2.55 billion.
The Indian snack food market, currently valued at around $13 billion, is experiencing rapid growth driven by changing consumer preferences and increasing urbanization. Bikaji Foods, founded in 1986 by Shiv Ratan Agarwal, has positioned itself as a key player in this expanding market. The company, which went public in November 2022, boasts a diverse product portfolio of over 300 snack items and exports to more than 35 countries.
Verma acknowledged the sector's attractiveness, stating, > "Suddenly, this has become a hot space." He anticipates that the entry of heavyweight investors will intensify competition and fuel further growth in the market.
Rather than considering a sale, Bikaji is focusing on its own expansion plans. The company aims to increase its market share by 50 basis points annually from its current 9% position. Bikaji has already made strategic acquisitions, including stakes in Bhujialalji and Ariba Foods, and has allocated a budget of 1 billion to 1.5 billion rupees (approximately $12 million to $18 million) for potential future acquisitions.
The company's growth strategy aligns with the broader trends in the Indian packaged food industry, which is projected to reach $70 billion by 2025. Bikaji expects its revenue to rise by 16%-17% in the current fiscal year, building on its previous year's revenue of 23.29 billion rupees.
As the Indian snack food market continues to evolve, driven by factors such as urbanization, changing lifestyles, and government initiatives promoting the food processing sector, Bikaji Foods appears well-positioned to capitalize on these opportunities while maintaining its independence in an increasingly competitive landscape.