Bikaji Foods Expands into Quick-Service Sector by Acquiring Hazelnut Factory

Bikaji Foods Retail, one of India's leading snack brands, has acquired a 53% stake in Hazelnut Factory Food Products, a cafe and artisanal sweets brand based in Lucknow, for ₹131 crore. The investment will be made in phases and is expected to be completed over the next two years.
Through this acquisition, Bikaji plans to establish a "House of Brands" aimed at catering to diverse customer tastes, positioning itself as a key player in the Quick-Service Restaurant (QSR) market. The deal will also allow Bikaji to diversify its product offerings, expanding into the premium bakery, patisserie, and cafe segments to tap into evolving consumer preferences.
The Hazelnut Factory (THF) operates six stores in Lucknow, along with one store each in Kanpur and Delhi, offering specialty coffee, handmade sweets, bakery items, and a variety of cafe menu options.
Deepak Agarwal, Managing Director of Bikaji Foods International, emphasized that the acquisition represents a significant milestone in Bikaji’s strategy to expand beyond traditional ethnic snacks. The move will integrate THF’s premium products with Bikaji’s manufacturing strengths, positioning the company to compete in the fast-growing QSR and artisanal sweets sectors.
Ankit Sahni, founder of The Hazelnut Factory, noted that the partnership will accelerate the brand’s growth, leveraging Bikaji’s vast distribution network and operational expertise.
The acquisition comes at a time when the QSR sector is experiencing rapid expansion, driven by increasing urbanization, a growing young population, rising tourism, and greater internet penetration. The trend of food aggregators and weekend socialization is also boosting demand for convenient dining options.
HBL