Haldiram’s Rules the In­dian Taste Buds Like No Other

With rev­enue of over ₹ 4,000 crore in FY16, the home-bred snacks maker raced past MNCs and re­gional ri­vals by ex­pand­ing reach and de­vel­op­ing new qual­ity prod­ucts

The Economic Times - - Brands: Creating Desire - Sagar.Malviya@ times­group.com

Mum­bai: Desi hal­wai and snacks maker Haldiram’s rev­enues grew 13% to cross ₹ 4,000 crore in FY16 shrug­ging in­creased scru­tiny from food reg­u­la­tor amid the Maggi cri­sis. The In­dian snack ma­jor is now twice the size of Hin­dus­tan Unilever's pack­aged food division or Nes­tle Maggi and larger than the In­dia turnover of the two Amer­i­can fast food ri­vals Domino’s and McDon­ald’s put to­gether.

The com­pany has three dis­tinct ar­eas of op­er­a­tions with Haldiram Snacks and Eth­nic Foods with that clocked ₹ 2,136 crore from the north­ern re­gion, Nag­pur based Haldiram Foods In­ter­na­tional that caters to west­ern and south­ern mar­kets with an­nual sales of ₹ 1,613 crore and a much smaller com­pany, Haldiram Bhu­ji­awala, for the eastern mar­ket with rev­enues of ₹ 298 crore in FY16, ac­cord­ing to data from Tofler, a com­pany re­search plat­form.

Th­ese fig­ures, when com­bined with other re­gional snack­ing firms, con­clu­sively demon­strates one thing — in fast food or munchies, de­spite the pro­fu­sion of MNC brands with high cool quo­tient, good In­dian palate prefers lo­cal savouries. “We have in­creased our reach and de­vel­oped prod­ucts in-house that en­sure qual­ity con­trol. We also un­der­stand In­dian palate well and that comes handy while launch­ing new prod­ucts,” says 43 year-old Ka­mal Agar­wal, fourth generation mem­ber of the found­ing fam­ily.

The brand, that ex­perts feel, could have more than ₹ 5,000 crore in re­tail sales, has sur­vived through dis­putes and break-ups in the orig­i­nal Agar­wal fam­ily that started with a small shop in Bikaner in 1937. Haldiram’s is the big­gest brand of those launched by Agar­wals and the sec­ond largest In­dian food brand after Parle.

While restau­rants and ca­sual din­ing was the be­gin­ning, pack­aged prod­ucts now make up 80% of rev­enues. Haldiram’s is by far the mar­ket leader in tra­di­tional snacks mar­ket and big­ger than five of its re­gional ri­vals — Balaji Wafers, Prataap Snacks, Bikan­er­vala, Bikaji Foods and DFM Foods — com­bined.

“Food is cul­ture in the coun­try and In­dian food should do well. But con­sumers are ex­per­i­ment­ing with food and it is un­der scru­tiny. Com­pa­nies would have to adapt and stay rel­e­vant es­pe­cially for mil­len­ni­als,” said Deven­dra Chawla, Fu­ture Group pres­i­dent that has re­cently launched tra­di­tional aloo bhu­jia in peri peri, wasabi and schezwan flavours.

The snacks mar­ket is still dom­i­nated by west­ern snacks such as potato chips and fin­ger sticks con­trolled pri­mar­ily by Pepsi Frito Lays and ITC Foods. Even th­ese com­pa­nies are grad­u­ally en­ter­ing into Haldiram’s turf. For in­stance, Pep­sico’s Kurkure has16 vari­ants of In­dian nam­keen while Pa­per Boat will soon en­ter the cat­e­gory.

While restau­rants and ca­sual din­ing was the be­gin­ning, pack­aged prod­ucts now make up 80% of co’s rev­enues

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.