Britannia Industries is in advanced discussions to acquire a majority stake in Kishlay Foods, a Guwahati-based company known for its wide range of snacks and food products. The bargain is esteemed at an assessed Rs 600-700 crore, as detailed by The Economic Times The negotiations are currently in the due diligence phase, according to sources familiar with the matter.
Kishlay Foods: A Regional Leader in Snacks and Beverages
Founded in 2001 by Sandeep Bajaj and Krishna Bajaj, Kishlay Foods started as a biscuit manufacturer and has since expanded into a leading snack food producer in Northeast India. The company offers a variety of products under brands like Non-Stop, Kishlay, and Mamooz, including biscuits, sweets, potato chips, noodles, and tea.
According to a report by Tracxn, Kishlay Foods generated an annual revenue of Rs 350 crore for the financial year ending March 2023. If the acquisition proceeds, Britannia is expected to gain a strong foothold in the Northeast market and expand into categories such as noodles and tea, where it currently lacks a presence.
Britannia’s Strategic Expansion Amid Intensifying Competition
Britannia Industries, led by Nusli Wadia, is keen on expanding its market presence, especially as the snacks market continues to grow at a double-digit pace. This acquisition would further strengthen Britannia's position in the competitive landscape, which has seen increasing pressure from regional and direct-to-consumer brands.
Since the onset of the Covid-19 widespread, territorial brands have experienced a resurgence in deals over different categories, counting rolls, noodles, cleanser, hair oil, and tea. The report noted that several companies have been exploring acquisitions of regional brands, but many deals have faced delays due to valuation disagreements.
Kishlay Foods' Distribution Network and Funding
Kishlay Foods, which secured $15 million in a funding round led by Norwest Venture Partners in 2018, operates an extensive distribution network across Northeast India, reaching 46 million consumers through over 200,000 retail touchpoints. The company is gradually expanding its distribution network to other parts of India.
Britannia reported a 3.74% year-on-year sales growth for the quarter ending in June, with revenues totaling Rs 3,967.38 crore. The company continues to focus on both domestic and international expansion, as evidenced by its acquisition of a majority stake in Kenya-based Kenafric Biscuits in 2022 to bolster its presence in Africa.
With inputs from agencies
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