Haldiram's Success Story: From Selling Bhujia For 2 Paisa Per kg To Rs 70,000 Crore Empire

Haldiram's Success Story: When we think about food, we often think of big international names like Domino's, McDonald's, or KFC. But there's an Indian brand that's outshined them all with its Indian snacks. That brand is Haldiram's. It began as a small shop in Bikaner, but now it's the biggest seller of snacks, selling its products in more than 100 countries worldwide. Haldiram's started in Bikaner, Rajasthan, with its tasty Bhujia. But it's become a global brand through smart business strategies and the introduction of new products. It's not just grown big; it's also found a special place in our hearts.

But one of the biggest deals in India might happen soon. The world¡¯s biggest private equity fund wants to acquire stakes in Haldiram. Haldiram is the biggest company in India for snacks and easy-to-eat foods. They became successful by selling traditional snacks like Bikaneri bhujia all over India.

A group led by a private equity fund called Blackstone, along with Abu Dhabi Investment Authority (ADIA) and GIC of Singapore, wants to buy most of Haldiram's business. They offered a bid to own 74-76% of the company. This could value Haldiram's at $8-8.5 billion (Approx Rs 66,400-70,500 crore), as reported in ET. Many other private equity firms have also shown interest in buying a part of Haldiram's since 2016-17.

The Journey of Haldiram¡¯s: From Humble Origins to Billion-Dollar Empire

Ganga Bhishen Agarwal

Haldiram's story started small. It began as a shop in Bikaner in 1937. Ganga Bhishen Agarwal, known as Haldiram, learned a snack recipe from his aunt. He improved the recipe and made it popular. He cleverly named it 'Dungar sev' after a popular Maharaja of Bikaner. With his new snack, he started his own business after leaving his grandfather's business. People really liked his product, and he ended up selling about 200 kilograms of bhujia every week. The price of his bhujia went up from 2 paise per kilo to 25 paise because it was so popular, as mentioned in Pavitra Kumar¡¯s book 'Bhujia Barons' reported ET.

Also Read: Tata Group In Talks To Buy 51% Stake In Haldiram's For Rs 40,000 Cr: Report

The Evolution of Haldiram¡¯s Business Model

Haldiram¡¯s journey from a small shop in Bikaner to a multi-billion-dollar enterprise is a testament to its entrepreneurial spirit and innovative business strategies. The brand has successfully leveraged its strong brand identity and customer loyalty to expand its presence in both domestic and international markets.

They opened shops in Kolkata, Nagpur, and Delhi. They also started making their snacks in factories and opened restaurants. Now, they have three main parts of their business: Haldiram Snacks and Ethnic Foods in Delhi, Haldiram Foods International in Nagpur, and Haldiram Bhujiawala in Kolkata. The Delhi business is the biggest.

Haldiram has emerged as a formidable player in the snack food industry, with a diverse portfolio of over 500 products ranging from snacks and namkeen to sweets and ready-to-eat meals. The company boasts a robust revenue stream, with operations spanning across 100 countries, including key markets like the UK, US, and Japan.

Haldiram's has also created new brands like Minute Khana, Cup Shup, and Cookie Heaven, and started selling chocolates under the Cocobay brand recently. They are now selling their products in supermarkets and online stores to compete with big brands like Britannia, Mondelez, and Amul. They've bought some smaller brands too, like Babaji Namkeen, Akash Namkeen, and Atop Foods.

Diving into the Numbers: Haldiram¡¯s Financial Performance

Haldiram success story | Photo: Reuters

People who understand Haldiram's business expect it to make about Rs 14,500 crore in revenue in the financial year 2024. They also think the profit before taxes and other costs (EBITDA) will be between Rs 2,300-2,500 crore. Haldiram's business has been growing by 18% every year for the last five years. They usually make a profit of about 14-15% on their products, but last year it went up to 17-18% because the cost of making things was lower.

Also Read: Explained: Delhi High Court Declares Haldiram As ¡®Well-Known Mark¡¯. Here¡¯s What It Means

Looking Ahead: Growth Prospects and Expansion Plans

Haldiram's from Nagpur and Delhi are coming together in a merger. This was approved by the National Company Law Tribunal. It should be done in the next three to four months. The Competition Commission of India approved the merger last April. But any deals will only happen if this merger goes smoothly.

As Haldiram¡¯s continues to chart its path towards greater success, the potential private-equity deal underscores the brand¡¯s enduring legacy and strategic vision for the future. With the backing of prominent investors, Haldiram¡¯s is poised to reach new heights and solidify its position as a market leader in the global snack food industry.

Tata also offered to acquire Haldiram

A report by Reuters on September 2023, claimed that Tata Consumer Products was in discussions to acquire a 51 percent stake in Haldiram's but was uncomfortable with the $10 billion valuation proposed by Haldiram's. Tata Consumer Products refuted this news in a filing with the stock exchange, stating that they were not engaged in any negotiations for such a deal.