IPO Bug Bites Bhujia Baron Bikaji

Bikaji Foods International was a bold move in the late nineteen eighties and so it is today as the company plans to launch its IPO. The brand was formed in the presence of Haldiram’s (market leader of savoury snacks).
IPO Bug Bites Bhujia Baron Bikaji

What’s Happening?

Bikaji Foods International has filed its IPO papers with SEBI to raise Rs 1,000 crore from the market. The promoters want to offload 2.94 crore shares through the offer-for-sale (OFS) route. Currently, there are no listed ‘bhujia’ companies in the market. This will give the company an edge over other snack manufacturers like Prataap Snacks. Before we dive into Bikaji’s revenue and profits, let’s learn its roots.

Bikaji Foods International was founded by Shiv Ratan Agarwal, grandson of Haldiram Agarwal. Shiv Ratan exited the three-generations old family business and started his own when Haldiram was already a big name. Shiv Ratan’s father divided the company among four sons – the eldest took charge of the Nagpur division, the third and fourth son took Delhi, while Shiv Ratan got the Bikaner’s business. Shiv Ratan’s business generated less revenue than big markets like Delhi. This territorial division of the company created family animosity between brothers resulting in Shiv Ratan’s exit. But today his brand is a Rs 1,650 crore business with a 5% share in the Rs 72,800 crore Indian snacks market.

Even though Haldiram generates much higher revenue than Bikaji, the latter has a big name in the bhujia space. There is substantial room for growth, and that’s why it’s raising more funds. Bikaji’s most significant manufacturing facility is in Bikaner. Currently, it has 300 varieties of namkeens, sweets and savouries. The company would soon foray into frozen foods and curries for the export market.

Will You Be Benefitted?

Bikaji will have no peers in the stock market after it’s listed. Also, the scope of growth gives it an upper hand to grow in unpenetrated markets. However, the unorganised players, especially Haldiram’s, remain a big competitor. So disrupting Haldiram’s empire won’t be easy. Bikaji will have to develop a strong distribution strategy to stand along with regional and big players.

What Lies Ahead?

Bikaji Food International has a long way to go to compete in the snacks market. Their strategy of roping in actor Amitabh Bachchan as brand ambassador has worked so far, but wooing retail investors will be tough. Agarwal will have to bring differentiated products that fit the customer’s needs.

Teji Mandi Multiplier Portfolio

Teji Mandi Multiplier

A basket of stocks of small and mid-sized public companies. This portfolio holds the potential to secure larger returns in the future as the companies grow.

1Y CAGR

Min. Investment

Subscription Fee

₹399/month for 6 months

Teji mandi Flagship portfolio

Teji Mandi Flagship

A basket of 15-20 long-term and tactical stocks that are rebalanced regularly to adjust to the market changes.

1Y CAGR

Min. Investment

Subscription Fee

₹99/month for 12 months

Recommended Articles

"Register Your Interest"

Already a member ? Log In