Britannia Industries is reportedly in discussions to acquire a controlling stake in Guwahati-based snack manufacturer Kishlay Foods, with the deal valued at ₹600-700 crore. The acquisition, currently in due diligence stages, would allow Britannia to expand its presence in the Northeast region and enter new categories such as noodles and tea, areas where it currently has no presence.
Kishlay Foods, founded in 2001 by Sandeep and Krishna Bajaj, is one of the largest snack manufacturers in Northeast India, producing biscuits, sweets, potato chips, and more under brands like Non-Stop, Kishlay, and Mamooz. The company recorded an annual revenue of ₹350 crore for the year ending in March 2023, according to Tracxn data.
This move comes as Britannia seeks to tap into the growing snack market, which is seeing double-digit growth. The acquisition would help the company compete with regional and direct-to-consumer brands, which have seen a resurgence post-pandemic due to increased demand and wider distribution enabled by quick-commerce platforms.
Kishlay Foods has a strong distribution network across Northeast India, reaching 46 million consumers through over 200,000 retail points. Britannia, which recently acquired a stake in Kenya’s Kenafric Biscuits in 2022, is aiming to bolster its domestic and international growth strategies.
This potential deal follows the trend of major FMCG players acquiring regional brands, such as Tata Consumer’s recent acquisition of Capital Foods, makers of Ching’s Secret, for ₹5,100 crore earlier this year. The Indian snacks market, estimated at ₹42,694 crore in 2023, is projected to more than double by 2032, reaching ₹95,521 crore.