New Delhi, September 28, 2023 – Haldiram’s, the iconic brand known for its traditional sweets and snacks, has achieved a remarkable milestone by surpassing $1.1 billion in revenue from packaged snacks in the fiscal year ending March 2023. This achievement underscores the strong preference of Indian consumers for homegrown snacks over Western alternatives like potato chips, according to an ET report.
Haldiram’s, a brand that commands a special place in the hearts and taste buds of Indians, has recorded snack sales of Rs 9,215 crore ($1.1 billion) during this period, reflecting an impressive 19% growth compared to the previous year. In stark contrast, PepsiCo’s snack sales stood at Rs 6,430 crore ($773 million), while Gujarat-based Balaji Wafers amassed Rs 5,296 crore ($637 million) in sales.
The journey of Haldiram’s to becoming India’s largest snack brand began around five years ago when it overtook PepsiCo in the country’s snack market. Since then, the gap in sales has continued to widen, solidifying Haldiram’s position as the top choice for Indian snack lovers.
Haldiram’s currently holds a commanding 21% share of the Rs 43,800-crore snack food market, surpassing Pepsi’s 15%. A significant portion, about 40%, is distributed among over 3,000 smaller regional players.
Interestingly, Haldiram’s operates as three distinct entities: Haldiram’s Snacks (north), Haldiram’s Foods (west and south), and Haldiram’s Bhujiawala (east). This geographical division emerged from a family split during the 1990s.
Neeraj Agrawal, director at Haldiram’s, attributed their sustained success to a relentless commitment to quality and pricing, even in the face of inflationary pressures. He also noted that Haldiram’s products are enjoyed both at home and away, distinguishing them from many other snacks primarily consumed outdoors.
While Haldiram’s crossed the billion-dollar revenue mark two years ago, it’s essential to acknowledge that this figure included restaurant revenues, constituting a fifth of their total sales. Industry experts suggest that the group’s total sales could exceed Rs 11,000 crore.
Traditional snacks, including namkeen, bhujia, and nuts, account for nearly half of the market, with multinational and local companies vying to tap into rural markets through attractive packaging and competitive pricing in the namkeens segment. Branded namkeen varieties such as dal, chivra, bhujia, and nuts have witnessed increased demand in recent years, and brands like Haldiram’s have capitalized on this trend.
Krishnarao Buddha, senior category head at Parle Products, noted a shift from unbranded to organized players in the market. He also highlighted that unlike segments that rely heavily on small packs priced at Rs 5 and Rs 10, Haldiram’s derives the majority of its sales from larger bulk packs, contributing to both value and volume shares.
The snacks market can be categorized into four sub-segments. The first comprises traditional snacks like namkeen, bhujia, and nuts, while the second includes Western options like potato chips. Riblon and gathia, found under brands like Kurkure, as well as extruded snacks like cheese balls, constitute the remaining two sub-segments. Haldiram’s maintains a presence across all these snacking categories.
Pepsi, the Western snacks market leader, which also witnessed a 20% growth in the previous fiscal year, primarily focuses on the sub-segment of Western snacks. A spokesperson for PepsiCo highlighted their growth strategy, emphasizing innovation and an expansion of their reach, while customizing flavors to cater to Indian preferences.
The roots of the Haldiram’s business trace back to its humble beginnings when Ganga Bishan Agarwal ‘Bhujiawala’ founded a small shop in Bikaner, Rajasthan, in 1937. In April, the Competition Commission of India approved the demerger plan of the Haldiram’s Group, marking another significant chapter in the company’s history.
