Ethnic snacks maker Bikaji Foods International has become the latest entrant into the bakery products market in India and will operate a separate subsidiary to manage it.
According to a recent regulatory filing, the Bikaner-based company has incorporated Bikaji Bakes Private Limited, a wholly-owned subsidiary of the company.
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“BBPL will be dedicated to carrying on the business of manufacturing, distributing and operating outlet for a wide range of frozen bread, cakes, gluten-free products, croissants, viennoiserie and other bakery products,” the company said in the filing.
Some of Bikaji’s competitors including Haldiram’s already offer cakes and other bakery items to the customers.
The announcement comes just weeks after the company in October announced its foray into the QSR business by acquiring a 53.02% stake in Lucknow-based The Hazelnut Factory for Rs 131 crore.
The Lucknow-based company sells speciality coffees, artisanal sweets, and bakery and patisserie products.
In an analyst call later in October, the company said that it sees bakery and artisanal sweets as “a big category coming up”.
“And it’s a big market we see in next in next 5-10 years,” said Rishabh Jain, chief financial officer at Bikaji Foods International.
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They also said that Bikaji QSR would come up by the end of this year. However, it is yet unclear if these QSR outlets will include bakery or if the bakery will be run as a separate business. The acquisition of The Hazelnut Factory was done via a different subsidiary Bikaji Foods Retail.
Of late, India has been witnessing a surge in home-grown as well as foreign cafe chains. Several big names like Armani/Caffe, Laduree, Pret a Manger and Tim Hortons have entered into the market.
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