Bikaji Foods International gets nod to make strategic investment in Ariba Foods

Bikaji Foods International Ltd. | Consumer Food | FMCG | BSE: 543653 | NSE: BIKAJI

23 Aug 2024 Evaluate

Bikaji Foods International has received approval to make a strategic investment of Rs 60.49 crore in Ariba Foods for acquisition of 55% of total issued and paid-up equity share capital. Subsequent to the acquisition, Ariba Foods will become a Subsidiary of the Company.

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. The company 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. The business of the Ariba Foods is not outside the main line of business of the company. This acquisition will enhance the company’s backward integration and securing control over the supply of Frozen Food.

Further, the company has entered into a Share Subscription Agreement with Ariba Foods to record the terms of the Strategic Investment, including the terms on which the company shall acquire equity shares equivalent to 55% of the total issued and paid-up equity capital of Ariba Foods. The Board of Directors of the Company at their meeting held on August 23, 2024, has approved the same.

Bikaji Foods International is the largest manufacturer of Bikaneri bhujia, packaged rasgulla, soan papdi and gulab jamun.