Private equity firm Jashvik Capital on Monday said it is set to acquire a “significant minority stake” in ethnic savoury snacks company Jabsons Foods Private Ltd. This will be Jashvik Capital’s first investment from its recently launched fund.

Founded in 1992 by Satyanarayan and Rahul Agrawal, Gujarat-based Jabsons Foods offers a range of ethnic snacks. The fully backward integrated company sells its products across India through multiple channels and in international markets such as US, Canada and the UK.

“We look forward to working closely with them to further strengthen our business, deepen our distribution and add more muscle to our organization. This partnership will help us further accelerate growth and increase the resilience of our organization,” said Rahul Agrawal, Director of Jabsons Food.

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The Indian packaged snacks industry is pegged at about $10 billion and is expected to grow at 13 per cent. Ethnic packaged snacks account for almost 50 per cent of the overall market, growing at 16 per cent due to a shift from unorganised players to organised brands. 

“We are very impressed with Jabsons’ portfolio innovation capabilities, brand loyalty among consumers, and management’s focus on rapid profitable growth”, said Naresh Patwari, Founder of Jashvik Capital. “Ethnic snacks industry in India has a long runway for growth and presents an opportunity to build scaled defensible businesses. We look forward to this opportunity of working with the Jabsons team to continue to scale this business and delivering consumer delight.”