Indian snacks maker Bikaji Foods is “not for sale” and is instead aiming to capitalize on the growing appetite for gourmet brands in the world’s most populous country, a top executive told Reuters.
The Indian salty snacks sector has grown rapidly in recent years as consumers increasingly splurge on packaged foods.
“Bikaji is not for sale. No matter what price anyone offers, there are few things that are not for sale,” Chief Operating Officer Manoj Verma had said that earlier this month, without disclosing whether the company had received buyout offers.
His comments came after India’s Tata Group and a consortium including Blackstone and Singapore’s GIC held takeover talks with market leader Haldiram.
Shares of Bikaji, majority-owned by founder Shiv Ratan Agarwal and his family, have surged nearly 67%, valuing the company at $2.55 billion, since Reuters reported on investor interest in Haldiram last September.
“Suddenly, it has become a hot spot,” Verma said, adding that he hoped the entry of giant investors would make the market more competitive and spur further growth. Reuters reported in May that talks between Tata and Haldiram had ended, while it was not immediately clear whether talks were still ongoing on other deals.
The snacks maker, which brokerage Anand Rathi said is the third-largest Indian snacks brand after Haldiram and Balaji, is currently more focused on growing its market share by 50 basis points every year from 9% currently.
Verma expects Bikaji’s revenue to expansion 16%-17% in the present financial year from Rs 23.29 billion in the year ended March 31. ($1 = 83.9330 Indian Rupees).
