Vision for global expansion

In our fast-paced lives, snacking is not just about having a bite to eat. It’s a ritual, a small celebration, a way to connect with taste. The delicious snack company is the culinary designer behind these delightful moments.

Indian company Bikaji Foods International understands the importance of providing quick energy during a long day. Delicious food inspired by local flavors and traditions makes me feel good. As family and friends gather around a shared bag of chips or a plate of spicy food, their offerings create a sense of community.

They bring delicious adventures to palates from around the world, fostering an exploration and appreciation for different flavours. Learn more about Bikaji Foods International and how they are bringing the taste of India to the world.

Industry Overview of Bikaji Foods International

India’s savory snacks industry has witnessed remarkable growth over the past few years, with its value increasing from Rs 500 billion in fiscal 2015 to Rs 751 billion currently. The organized segment comprising well-packaged, labeled and branded products accounts for approximately $423 billion in this market.

Within the organized segment, Western savory snacks hold a dominant position, accounting for approximately 57% of the total organized savory snacks market, with sales amounting to Rs 242 billion.

While the market is characterized by numerous unorganized players operating across different product segments and offering traditional snacks catering to regional preferences, large FMCG companies are leveraging the market potential through strong supply chain, diversified product portfolio, aggressive advertising and R&D efforts. came.

These organized players gained the upper hand as they further consolidated their position as many small, unorganized businesses were shut down due to factors such as demonetization, GST and the pandemic. The organized sector has experienced significant growth through innovative launches strategically targeted at urban and rural consumers. advertisement And celebrity endorsements amplify their success.

India’s tasty snacks market is expected to reach an estimated value of ₹1227 billion by FY 2026. Organized players prioritize quality, convenience, and compliance with safety standards to capture significant market share and position themselves to meet evolving consumer demands and generate revenue. Growth potential of the market.

Bikaji Foods International Company Overview

Bikaji Food International It is a leading Indian FMCG company specializing in ethnic snacks and sweets. Established in 1995, Bikaji has a rich heritage dating back to 1888, originating from the city of Bikaner in Rajasthan. It has an extensive product portfolio of over 300 products across 13 categories.

Bikaji offers a wide range of traditional and ethnic snacks, its product segments include:

Bhujia, Namkeen and Western Snacks

This is Bikaji’s largest segment, accounting for approximately 60% of its revenue. These include traditional namkeens such as bhujia, dry samosas, sev and chakli, as well as western snacks such as chips, extruded products and cheese balls.

Sweets and Papad

This segment accounts for approximately 25% of Bikaji’s revenue. These include traditional Indian sweets such as rasgulla and gulab jamun, regional specialties such as gajak and rewari, and various types of papads.

cookies and biscuits

This segment contributes approximately 10% to Bikaji’s revenue. It includes a variety of cookies and biscuits, both traditional and western. Bikaji Foods International has a strong presence across 28 states and 6 union territories in India and a strong distribution network spanning 6 districts, 38 super stockists, 416 super distributors and over 1,616 direct distributors. I have it.

Bikaji boasts of six manufacturing facilities with a cumulative annual production capacity of 370,000 MT. The company’s products are exported to 35 countries around the world, contributing to its global presence. With a focus on quality, innovation and traditional flavors, Bikaji has established itself as a prominent player in the Indian ethnic snacks market.

The company’s stock returned 40.8% year-over-year. The stock is currently trading in the 500-550 range.

Also read…

Finance of Bikaji Foods International

In 2023, Bikaji Foods recorded significant growth in its sales, growing by 22.04% to reach ₹1,966.07 crore as compared to ₹1,610.96 crore in 2022. As a result of three years of analysis from 2021 to 2023, the company recorded sales at a compound annual growth rate (CAGR) of 22.31%.

At the same time, there was a notable increase in net profit, which increased by 66.51% from ₹76.03 crore in CY2022 to ₹126.6 crore in CY2023. The increase in sales and profits was driven by improved geographic location and lower oil prices.

In CY23, Bikaji Foods maintained favorable financial metrics. return the stake (ROE) is 14.27% and return on capital employed (ROCE) is 17.26%.

Bikaji Foods International’s future plans

Bikaji Foods aims to increase its direct outlets from 2.3 million to 3.5 million in the next two years. They are focused on increasing their direct reach from the current 80,000 stores to approximately 1.6 million stores by FY26. Additionally, the company recently added new production capacity, including a new frozen snack plant that began commercial production in November 2023.

They expect this refrigeration plant to generate revenue of around Rs 200 crore in two to three years. Bikai Foods recently established a subsidiary in the United States and expanded its direct distribution network in the UAE. They expect their export business to grow by around 25% in the next few years, with a focus on frozen products for the Indian diaspora in markets such as the US and the Middle East.

Bikaji Foods has successfully launched a new product called Paneer Bhujia, which has performed very well. They also expect that the new frozen plant will allow them to launch more innovative frozen snack products, initially targeting exports.

With the help of the Production Linked Incentive (PLI) scheme, they expect to record a revenue of around Rs 95-96 crore in the fourth quarter of FY24 from the PLI scheme over the previous three years, from which they expect to record a revenue of around Rs 45-48 crore per annum. You get the benefits. PLI method.

conclusion

Bikaji Foods International is poised for an exciting growth trajectory. The company is aggressively expanding its distribution network with a focus on strengthening its presence in core and emerging markets. At the same time, Bikaji is diversifying its product portfolio by entering promising segments such as frozen foods.

With robust manufacturing facilities and strong brand equity, the company aims to leverage innovative product launches to cater to evolving consumer preferences. Exports, especially to markets with large Indian populations, provide a profitable avenue for growth. Bikaji remains committed to increasing operational efficiency, optimizing capacity utilization and leveraging government incentives to strengthen profitability margins.

The company’s strategic initiatives position it well to capitalize on the surging demand for ethnic snacks and confectionery across domestic and international markets. What do you think about Bikaji’s performance? Will it continue to grow? Please share your thoughts in the comments below.

Written by Pavunkumar VM

By leveraging the Stock Screener, Stock Heatmap, Portfolio Backtesting and Stock Comparison tools on the Trade Brains portal, investors have access to comprehensive tools to identify the best stocks, stay updated and informed with stock market news. invest.

---

Start your stock market journey now!

Want to learn stock market trading and investing? Check out exclusive stock market courses from FinGrad, a learning initiative from Trade Brains. You can sign up for free courses and webinars from FinGrad and start your trading career today. Sign up now!!