Britannia Eyes Kishlay Foods Acquisition

5 Sep 2024 , 12:09 PM

News reports claimed that Britannia Industries is in negotiations to purchase a majority stake in Kishlay Foods, a Guwahati-based manufacturer of western and ethnic snacks, biscuits, candies, potato chips, noodles, and tea, at a valuation of ₹600–700 crore.

One of the reports stated, “The deal is in the due diligence stages.” According to its website, Kishlay Foods, which was started in 2001 by Sandeep and Krishna Bajaj as a biscuit company, is currently “one of the largest snack foods manufacturers of Northeast India” and produces brands like Non-Stop, Kishlay, and Mamooz.

In a valuation report on Kishlay Foods, Tracxn stated that the company’s sales for the year ended March 2023 was $41.8 million, or roughly ₹350 crore.

Another executive stated to ET, “If the negotiations proceed, Britannia will get a captive market in the Northeast, in addition to a play in large categories where it does not yet have a presence, like noodles and tea.”

According to the mentioned executive who talked to ET, the company that produces biscuits, dairy products, and bakery goods under the leadership of Nusli Wadia is eager to make this acquisition “at a time when the snacks market is growing in double digits and competition from regional and direct-to-consumer brands has become hyper-intensive.”

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