Nissin Foods Holdings has raised its stake in Japanese rice snack maker Bonchi Co., making the business a consolidated subsidiary.

Nissin will acquire an additional 20.1% of the equity interest of Bonchi on 29 January, the company revealed today (15 January). This will increase its total holding in Bonchi to 50.1% and Nissin said Bonchi will become a consolidated subsidiary. 

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Nissin, which is best known for its noodles but also manufactures products from confectionery to chilled and frozen foods, said it wants to benefit from Bonchi’s “rich experience and know-how” as well as specialised equipment in the field of rice snacks.

The company manufactures brands including Bonchi-Age and Aji-Karuta. It was founded in 1931 and in 2015 the firm generated sales of JPY9.9bn (US$84.2m). 

Nissin initially took a stake in Bonchi in 2014 and, since then, the group’s have cooperated in sales, marketing, product development and production. Nissin and Bonchi have been jointly “working to attract new customers” through marketing, a packaging revamp and NPD. 

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“The conversion of Bonchi into a consolidated subsidiary will further the initiatives and enhance the corporate value of both the group and Bonchi,” Nissin said in a statement. 

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The group added the impact of the transaction was expected to be “insignificant” on its own results.

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