The story of Haldiram’s success is deep rooted in how a simple idea, an honest product, and resilience has the ability to move mountains. This is a story of how a business that is a part of people’s everyday lives is a key contributor to driving the economy.
The business that started in the pre-independence era in the bustling bazaars of Rajasthan’s Bikaner has now become a multi-billion dollar empire. The pioneer of the iconic ‘aloo bhujia’ and ‘chole bhature’– this Marwari family-run business has become an inspiration for countless restaurant chains who aim at becoming the next Haldiram’s.
And that is how Haldiram’s has been a poster child of #LeverageIndia in boosting the Indian economy and pushing it to the highest echelons. As the brand gears up for its IPO, we explore how a well-executed business can play an important role in shaping a country’s economy.
Who is Haldiram: The tale of India’s Bhujia Baron
The journey from a small namkeen shop in Bikaner to a business with annual revenue of over Rs 7,000 crores was not easy.
A young and enterprising Ganga Bhishen Agarwal, lovingly referred to as Haldiram by his mother, had just walked out of his house and father’s shop because of a family dispute. But, it was his ‘never give up’ attitude that pushed him to start his own little venture.
As the first step, he perfected the recipe to make the crispiest, thinnest, mouth-watering masaledar bhujia. Then, Ganga Bhishen Agarwal set off on a quest t market it and expand sales across state borders. Way ahead of his time, he used Out-Of-Home(OOH) marketing in the pre-independence years and having the first-mover advantage, created a brand out of a product.
While attending a wedding in Kolkata, the idea of setting up a kiosk there dawned upon Haldiram. Expansion and diversification followed in the years to come, and the Bikaneri Bhujia business traveled far and wide.
An Active Lesson in Entrepreneurship
Food is an emotion in India and Haldiram’s has been instrumental in keeping that homely feeling intact. Thanks to the same familiar taste and unchanged quality, Haldiram’s has achieved what international brands couldn’t.
Haldiram’s is the classic example of grit, effective strategizing, and possessing sharp business acumen. It serves as an inspiration for all aspiring entrepreneurs in the country. A hole-in-the-wall enterprise that started in a small town is now touching millions of lives around the world without compromising on the traditional values and methods.
And their price point is a study in itself. The products are priced affordably to all tiers of the society, without compromising on the quality of the packaging or the taste. Their strong network ensures product availability in the remotest of villages as well as in the posh heartland of cities.
A Tale of Resilience
Despite their iconic Chandni Chowk outlet being burned down amid the 1984 riots, it was the Agarwal family’s vision to save and honor the hard work and authenticity of the brand created by the previous 2 generations that drove the brand to success. They were content, yet ambitious.
Ambition helped them scale the business to greater heights, but they didn’t let it sidetrack to greed. They were content being one of the largest desi snack outlets and didn’t ride on the wave of western flavors for quick success. They are happy being the modern yet desi halwai, dishing out India’s comfort food.
Haldiram’s now has manufacturing plants in Kolkata, New Delhi, Nagpur, and Bikaner, and the product variety includes over 400 different snacks, sweets, namkeens, cookies and biscuits, fruit concentrates etc., and are exported worldwide.
How Haldiram’s Used Their Potential to #LeverageIndia
Haldiram’s has proven to be a great asset to the national economy and has defeated a lot of international brands. Their revenue of Rs 4,000 crore in FY16 crossed the combined revenue of Dominos and McDonalds in 2017.
Among all their endeavours, they have also partnered with IRCTC in several states and offer tasty and healthy ready-to-eat meals to passengers on the go. They are on a path of constant growth with their latest endeavour being a partnership with the second-largest bakery brand in the world, Brioche Dorée. The international brand is all set to offer vegetarian products for the first time, in partnership with India’s mithai-and-snack maker. After being valued at a whopping $3 billion, the company attracted interest from Kellogg’s too.
According to CRISIL ratings, the expected CAGR for Haldiram’s will be 15-17% between FY 2021- 2023, and the operating margin will stay stable at 15-17%. This will majorly be driven by new product launches and expansion of distribution channels.
Well rooted in Indian tradition and with world-class technology at its disposal, Haldiram’s is making a mark globally. The company has utilized the first-mover advantage by offering superior quality and packaging in a previously unorganized industry. This goes on to show the potential of Indian businesses and how with the right leadership and support, they can make a mark globally.
Yubi Salutes These Enterprises
At Yubi, we are a strong believer of the fact that a business is always more than a business. It can be a story of tradition, a story or resilience and growth, a legacy tale, or a commitment to achieve something greater.
These businesses are never built overnight and are never grown alone. It requires a lot of thing, including the access to capital. Yubi is committed to ensuring that we keep the engine of economy running by providing enterprises with capital, anytime and anywhere, so they can truly #LeverageIndia.
Yubi celebrates the entrepreneurial efforts of Haldiram’s and all such businesses. Let’s build great together!