India’s Bikaji Foods International (BFIL) has entered a snacks joint venture in Nepal with local conglomerate Chaudhary Group (CG).
“The joint venture marks Bikaji’s commitment to strengthening its brand presence in the Nepalese food market and a significant milestone in its international growth strategy,” the company said in a stock exchange filing today (24 July).
BFIL added the partnership will focus on the manufacturing, trading and marketing of its snacks and sweets products in Nepal, including bhujia, namkeen and papads.
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The joint venture will be equally owned by BFIL and CG Foods in a partnership that “unites Bikaji’s legacy in ethnic snacks” with Chaudhary Group’s “extensive market expertise to elevate Nepal’s overall FMCG landscape”.
Both parties will build a manufacturing facility in Nepal to ensure consumers get to “experience premium and authentic ethnic snacks and sweets with minimal turnaround time”.
Nepal’s FMCG sector is now worth over a billion dollars and is seeing double-digit growth of around 20% annually, BFIL said, citing the Investment Board Nepal.
Deepak Agarwal, the managing director of BFIL, said: “This joint venture marks a pivotal milestone in Bikaji’s global growth journey and promotes our strong conviction in Nepal’s potential as a key strategic market.
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By GlobalData“With CG Group’s strong market leadership and deep local insights, we are confident in our ability to deliver high quality, affordable products that resonate with the consumers in Nepal.”
Agarwal added: “Beyond commerce, this partnership seeks to create enduring value – empowering communities, fortifying supply chains and enhancing Nepal’s food ecosystem.”
Varun Chaudhary, a director of CG Foods, said: “This collaboration reaffirms our commitment to bringing world-class food innovation to Nepal, while expanding and strengthening our local capabilities.
“Our joint venture with Bikaji is not just about product excellence – it’s about creating long-term value for Nepal, from generating employment to strengthening supply chains, this partnership has the potential to accelerate Nepal’s food sector and set new benchmarks in quality and accessibility.”
BFIL has also been active in deal-making closer to home. The company took a majority stake last year in Hazelnut Factory Food Products, a local café and artisanal sweets business.
It also took a 55% share of Indian peer Ariba Foods, which produces mixed vegetables, vegetarian and non-vegetarian burgers, paratha and roti breads. And in 2023, BFIL purchased a 49% stake in Indian snacks maker and start-up Bhujialalji.
