Chaudhry Tabraiz Aurah
London:Cake Box, the UK retailer known for its egg-free celebration cakes, has acquired the iconic Asian sweets brand Ambala Foods in a £22 million deal. The acquisition includes £16 million for Ambala’s brand and operations, along with £6 million for its manufacturing facility located in Welwyn Garden City.
Ambala Foods, a family-run business founded in 1965, has been a cornerstone of South Asian confectionery in the UK for decades. Known for its authentic range of traditional sweets and savouries, Ambala currently operates 22 stores, comprising 19 company-owned outlets and 3 franchised locations across the country.
The sale comes after the passing of Mohammed Ali Khan, Ambala’s long-time owner, in late 2023. Following his death, the Khan family decided to sell the business, leading to the deal with Cake Box.
The takeover by Cake Box, a company founded by Sukh Chamdal, has raised concerns regarding the future of Ambala’s product offerings, particularly its halal certification. Ambala’s loyal customer base, which includes a large Muslim clientele, has traditionally relied on its halal-certified products. However, sources close to the deal indicate that Cake Box may not guarantee halal certification for Ambala sweets in the coming months.
The uncertainty surrounding halal certification has left many loyal customers concerned about the continuity of Ambala’s traditional offerings. Over the years, Ambala established a strong reputation within the Muslim community by adhering to strict halal standards. A potential shift in the product’s certification could impact consumer trust and sales.
Cake Box, which specializes in egg-free cakes and operates over 200 stores across the UK, has been expanding its footprint in the food sector. The acquisition of Ambala Foods marks another strategic move to strengthen its position in the growing market for South Asian sweets and confectionery.This acquisition also revives past discussions around Cake Box’s ownership and potential changes in Ambala’s operations. A few years ago, reports surfaced suggesting that Cake Box, which is primarily owned by individuals of Indian origin, might influence the product range and certification standards of companies it acquires. This has once again sparked concerns over whether Ambala’s historically halal-certified products will continue to meet the same standards.
