A top executive told Reuters that Indian snack manufacturer Bikaji Foods is “not for sale” and is instead hunting itself in an effort to capitalize on the nation’s growing demand for savory brands.
Due to consumer spending on packaged foods, the Indian market for savory snacks has grown dramatically in recent years.
“Bikaji cannot be purchased. Manoj Verma, the chief operating officer, stated earlier this month that “there are certain things that are not for sale, regardless of price someone offers,” without revealing if the business has received takeover offers.
His remarks followed acquisition negotiations between market leader Haldiram’s and a group comprising Blackstone and Singapore’s GIC, led by the Tata Group of India.
Bikaji’s stock, which is primarily owned by its founder Shiv Ratan Agarwal and his family, has increased by roughly 67% since Reuters published a story in September about investor interest in Haldiram’s. The company is currently valued at $2.55 billion.
In January, Haldiram’s was in negotiations to purchase a majority share in competitor Prataap Snacks.
“This has suddenly become a hot space,” Verma remarked, adding that he anticipates the arrival of major investors to increase market competition and spur additional expansion.
While it is unclear at this time whether further deal negotiations are still going on, Reuters reported in May that discussions between Tata and Haldiram had concluded.
Bikaji, which recently acquired shares in Bhujialalji and Ariba Foods, stated that it has a budget of one billion to one and a half billion rupees (roughly $12 million to $18 million) for the right target and that it plans to make more acquisitions only if they could help expand distribution or boost its presence in the frozen-food market.
The snack manufacturer, which according to brokerage Anand Rathi is the third-biggest brand in India after Haldiram’s and Balaji, is concentrating more on growing its market share from its current 9% to 50 basis points annually.
Verma expects Bikaji’s revenue to rise 16%-17% in the current fiscal year from 23.29 billion rupees in the year ended March 31. ($1 = 83.9330 Indian rupees)