Bikaji Foods International Ltd.'s acquisition of Ariba Foods Pvt. serves two primary objectives; adding new product categories and strengthening distribution capabilities, according to Rishabh Jain, chief financial officer of BFIL.
The namkeen maker announced the acquisition of a 55% stake in Ariba Foods Pvt. for Rs 60.5 crore last week, marking a significant expansion into the frozen food sector.
Ariba Foods' established market presence and its focus on frozen snacks align well with BFIL's growth plans, Jain said.
Based out of Madhya Pradesh's Indore, Ariba Foods is renowned for its diverse range of frozen snacks and sweets. This acquisition will see the company become a subsidiary of BFIL, with plans to integrate Ariba's existing infrastructure into BFIL's operations.
There is no expectation for additional cash flow from Ariba over the next three years, Jain said.
The integration of Ariba Foods' products, including parathas to curries to vegetables to chaas, will complete BFIL's frozen food portfolio, according to him.
Jain is optimistic that this strategic move will drive significant growth, with projections to increase BFIL's frozen food segment from Rs 25-30 crore to Rs 100 crore within the next three to three and a half years.
Looking ahead, the top executive expressed confidence in the potential for substantial revenue growth, particularly with the upcoming festive season. This acquisition is set to play a key role in BFIL's plans to significantly boost its frozen food division.
Bikaji Chases Rs 100 Crore Frozen Snack Target | Watch
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