A $1 billion bite: When it comes to crunch, desi snack packs are 'King' for Haldiram’s

Mumbai: Traditional sweets and snacks brand Haldiram’s earned over a billion dollars from packaged snacks during FY23, as Indians prefer to munch more desi snacks instead of Western ones such as chips.

In the year ended March 2023, Haldiram’s snacks sales hit Rs 9,215 crore ($1.1 billion), a 19% increase from a year ago, according to Nielsen data cited by industry officials. In comparison, PepsiCo’s snack sales were Rs 6,430 crore ($773 million) while Gujarat-based Balaji Wafers took in Rs 5,296 crore ($637 million).

Haldiram’s overtook PepsiCo about five years ago to become the country’s largest snack brand, and has since widened the sales gap. It now has a 21% share in the Rs 43,800-crore snack food market, compared to 15% for Pepsi, while nearly 40% is controlled by over 3,000 smaller or regional players.


Over Rs 11k cr sales likely
The family-run group is operated as three separate entities — Haldiram’s Snacks (north), Haldiram’s Foods (west and south), and Haldiram’s Bhujiawala (east) — after the Agarwal family split the business geographically among themselves in the 1990s.

“We have remained focused on our quality and pricing even when inflation hit our margins. While small packs helped reach rural markets, our brand is consumed both out of home and in-home, unlike most other products that are largely used outdoors," said Neeraj Agrawal, director at Haldiram’s.

Haldiram’s crossed a billion dollars in revenues two years ago, but this included restaurant revenues, which account for a fifth of their sales. Group sales could be over Rs 11,000 crore, said industry officials.

The Shift
Traditional snacks account for nearly half the market, with both multinationals and homegrown companies pushing namkeen into the hinterland with attractive packaging and pricing, say industry experts.

In the past few years, branded namkeen varieties such as dal, chivra, bhujia and nuts have seen higher demand, which brands including Haldiram’s have been able to cash in on.

“There is a shift from unbranded players to organised ones,” said Krishnarao Buddha, senior category head at Parle Products. “Haldiram’s has a strong position in the traditional snacking space. Also, unlike the segment — that gets over 65-70% of sales from small packs worth Rs 5 and Rs 10 — the majority of sales by Haldiram’s are in large bulk packs, which helps both value and volume share.”

The overall snacks market is divided into four sub-segments. Traditional snacks such as namkeen, bhujia and nuts comprise the first while the second includes western ones such as potato chips. Riblon and gathia, sold under brands such as Kurkure, as well as extruded, which includes cheese balls, are the others.

Haldiram’s has a presence in nearly all snacking categories.

Western snacks market leader Pepsi, which also saw 20% segment growth in the previous fiscal, is largely restricted to that sub-segment. “Convenient foods have fuelled growth through a robust innovation strategy and a focus on expanding reach,” said a PepsiCo spokesperson, adding that it tailors its core flavours to Indian palates. “ “As leaders in our category, we maintain a keen understanding of our consumers' preferences, enabling us to introduce successful innovations that keep us at the forefront of the industry.”

The Haldiram’s business was started by Ganga Bishan Agarwal ‘Bhujiawala’ from a shop in Bikaner, Rajasthan, in 1937.

In April, the Competition Commission of India gave its nod to the demerger plan of Haldiram’s Group.