June 18, 2026: The Hazelnut Factory prominent leaders, Ankit Sahni (Founder & CEO) and Badal Sahni (Director), the brothers who rewrote the entire culture of a cafe through their “three-in-one” concept that comprises of specialist coffee, fine artisan mithai along with a European-café experience in one place.
Author: Aditya Pareek | EQMint | EQ Originals
Ankit studied the market conditions and noticed the fact people had to travel to different destinations for fulfilling their cravings: mithai from sweet shops, cakes from Western bakeshops, and premium coffee from fancy cafes. He came up with an idea of creating a place where one could satisfy all his/her cravings; even savoury, and hence ‘THE HAZELNUT FACTORY (THF)’ was born. The experiment that started in Lucknow made Rs. 100 Cr sales within 7 years opening about 8 outlets of their own till date.
How ideology turned into a bespoke purveyor
“Coffee, mithai, and bakery in one place” is definitely a category, since this idea can very easily be cloned by any other firm assuming that they have enough funding at least during one real estate cycle. However, what remains unique even after cloning is of much importance. And in this case, THF has an edge over its competitors, in terms of product engineering. The Chocolate Hazelnut Praline Cake and Assorted Labon Box are examples where two types of cuisines meet each other in one dish; but they actually symbolize the fusion of cooking techniques from Belgian chocolate and Indian mithai through a process of engineering which entails knowledge of both the cuisines. Geography is not something outside of the whole affair but acts as a facilitator in creating the problem.
The majority of the branded bakeries and Quick Service Restaurants (QSR) in India are metro-based enterprises and those that emerge in metro areas later extend their business to tier-2 cities, only after growing big enough. THF, went exactly in the opposite direction; it first created a reputation for itself as a bakery company in Uttar Pradesh before stepping into metro cities. Here again, THF scores over other companies, due to the fact that it will find it easier to acquire manpower and premises at lower cost compared to its competitors.
The Bikaji Catalyst: Betting big on the The Hazelnut Factory -model
The acquisition of the café chain in Lucknow through its wholly owned subsidiary, Bikaji Foods Retail Limited (BFRL), is made in a phased manner where the transaction occurs in different tranches. As per the terms agreed, Bikaji plans to make an investment of ₹131.01 crore for holding the controlling majority stake of 53.02% in the business. The first tranche involved a purchase of 40.40% shareholding, for which an investment worth ₹61 crore was made in October 2024, followed by another investment of ₹39.99 crore, to purchase 8.59% shareholding.
Theobroma’s path to scale ran through a clean financial-sponsor buyout — ChrysCapital acquiring a 90% stake for ₹2,410 crore, with founders retaining a minority sliver and a financial investor setting the pace of expansion, while THF’s path is structurally different: a strategic trade phased over two years rather than executed as one transaction, with the founding team remaining operationally embedded throughout rather than stepping back post-acquisition.
Hazelnut Factory Food Products Private Limited (THF) has transitioned from a niche brand into a major institutional player, with revenue increasing from ₹44.85 crore in FY24 to over ₹100 crore by March 31, 2026, driven by an 85% year-on-year surge. Operational expansion accompanied this growth, with the brand expanding from eight premium outlets in 2024 to 18 locations across 10 cities by mid-2026, supported by a hub-and-spoke production model and a strong digital presence.
Final verdict
The Hazelnut Factory came up with an unconventional ideology with may have failed considering Indians love for its traditional sweets. They turned this fear into an idea, rather than backing out they aimed at a family-oriented marketing plus homely paradise, by creating blends keeping the strong mithai flavours of Indian palette and structuring the café’s infrastructure highly rooted like the walking into the walls of a grand mahal. They depict a perfect blend of how foreign cuisines can enhance customer experience.
For more such information visit EQMint
Join our Whatsapp channel for timely updates: Whatsapp
Disclaimer: This article is not an investment advice and is for educational purpose only.
