Bikaji says ‘not for sale’ amid investor interest in Indian snacks market

Indian snacks maker Bikaji Foods is "not for sale" and is instead on the prowl itself, aiming to cash in on the growing appetite for savoury brands in the world's most populous country, a top executive told Reuters.

The Indian savoury snacks sector has ballooned in recent years as consumers splurge on packaged foods.

"Bikaji is not for sale. Whatever price someone offers, there are certain things that are not for sale," Chief Operating Officer Manoj Verma said earlier this month, without disclosing whether the company has received buyout offers.

His comments came after India's Tata Group and a consortium including Blackstone and Singapore's GIC held acquisition talks with market leader Haldiram's.

Shares in Bikaji, which is majority-owned by founder Shiv Ratan Agarwal and his family, have gained around 67% to value the company at $2.55 billion since Reuters reported on investor interest in Haldiram's last September.

Haldiram's itself was in talks to acquire a majority stake in peer Prataap Snacks in January.

"Suddenly, this has become a hot space," Verma said, adding that he expects the entry of heavyweight investors to make the market more competitive and fuel further growth.

Reuters reported in May that talks between Tata and Haldiram's had ended, while it is not immediately clear if other deal talks are still ongoing.

Bikaji, which recently bought stakes in Bhujialalji and Ariba Foods, aims to make more acquisitions only if they could help expand distribution or boost its presence in the frozen-food market, he said, adding that it has a budget of 1 billion rupees to 1.5 billion rupees (around $12 million-$18 million) for the right target.

The snacks maker, which brokerage Anand Rathi said is the third biggest Indian snacks brand behind Haldiram's and Balaji, is more focused on expanding its market share by 50 basis points every year from 9% currently.

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)