Haldiram’s, the iconic Indian snack brand, has been tantalizing taste buds for over eight decades. From its humble beginnings, the brand quickly gained traction, especially for its unique-tasting bhujia. Today, the brand owns and operates over 150 stores/outlets across the world and accounts for around 13% of India’s $6.2 billion (₹51,600 crore) savoury snack market.
While the brands need no hype, the recent buzz about a possible deal with the iconic Tata Group has brought the spotlight on India’s favourite desi snack brand. Recent reports suggest that the Tata Group’s consumer unit was in negotiations to acquire a majority stake in Haldiram’s. However, both Tata Consumer Products and Haldiram’s have refuted these acquisition rumours. But the rumours have definitely piqued the interest of people and investors in both the companies.
So with the renewed interest, we dive deep into the decades-old company and how you as an investor can get in on the recent action.
Haldiram’s Company History
With its roots tracing back to a modest namkeen shop in Bikaner, founded in 1937 by Ganga Bishan Agarwal (popularly known as Haldiram Ji), the brand has grown exponentially. The journey of Haldiram’s is nothing short of inspiring. From a small shop in Bikaner, the brand underwent numerous expansions, introduced new product lines, and opened retail chains across India.
The brand’s commitment to authenticity and quality has remained unwavering. The recipes and ingredients, chosen to accentuate the brand’s core values, have been consistently maintained over the years. The brand promises that all its products are natural, and wholesome, and exude a homemade feel.
How to Invest in Haldiram’s Shares
Since Haldiram’s is not a publicly listed company you will not be able to buy Haldiram’s shares or check the Haldiram’s share price. However, if the rumours turn out to be true and Tata Consumers goes on to take majority ownership of the iconic brand, you can invest in Haldiram’s shares by buying Tata Consumer shares that are listed.
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However, even if that happens, one should note that an investment in Tata Consumer’s shares should not be taken as a like-for-like investment in Haldiram’s shares because the Tata Group company has vast operations of which Haldriram would be a part.
As Haldiram’s is not a listed entity its financial reports are not publicly reported. However, media reports peg the company’s FY22 (April 2021-March 2022) revenue at around $981 million (₹8,044.2 crore). As per a recent Reuters report, the company’s revenue has now climbed up to over $1.5 billion (₹12,300 crore) with an operating profit of $200 million (₹1,640 crore). For FY21, the company’s revenue was reported to be around ₹5,500 crore.
Factors Influencing Haldiram’s Performance
- Competition: The Indian snack market is fiercely competitive. Brands like Lays (from Pepsi) pose significant competition to Haldiram’s. Bikaji is also a fierce competitor of the brand.
- Market Trends: The evolving tastes and preferences of consumers can impact Haldiram’s product offerings.
- Regulatory Changes: Any changes in food safety standards or regulations can affect Haldiram’s production and distribution.
- Global Expansion: Haldiram’s overseas ventures and how they fare can influence the brand’s overall performance.
Alternative Investment Ideas
For those interested in the Indian snack market, other major players include brands like Lays (Pepsi), Bikanerwala and Bikaji. Bikaji Foods is a company that closely competes with Haldiram’s and is also listed on the Indian stock market.
In fact, Bikaji was broken from Haldiram’s in the 1990s. Ganga Bishon’s grandson, Shiv Ratan Agarwal, branched out to start his brand called Bikaji in 1993. Bikaji was listed on the exchanges last year, debuting with a 8% premium. Today the Bikaji share price trades around 62% higher than its IPO price of ₹300.
Apart from Bikaji, several FMCG giants can be classified as Haldiram’s competitors such as Britannia, Nestle etc.
Cover Photo from Puneet vivid on Wikimedia Commons.
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