Haldiram’s, the revered brand known for its traditional Indian sweets and snacks, has achieved a significant milestone by raking in over a billion dollars in packaged snack sales during the financial year 2023. This remarkable achievement reflects Indians’ growing preference for desi snacks over Western alternatives like chips.
According to Nielsen data cited by industry insiders, Haldiram’s recorded snack sales of ₹9,215 crore ($1.1 billion) for the fiscal year ending March 2023, marking a substantial 19% surge compared to the previous year. In contrast, PepsiCo’s snack sales stood at ₹6,430 crore ($773 million), while Gujarat-based Balaji Wafers reported ₹5,296 crore ($637 million) in sales.
Haldiram’s secured its position as the country’s leading snack brand about five years ago, surpassing PepsiCo, and has since expanded the gap in sales. Currently, Haldiram’s commands a 21% share of the ₹43,800-crore snack food market, compared to Pepsi’s 15%, while the remaining 40% is divided among over 3,000 smaller regional players.
Neeraj Agrawal, Director at Haldiram’s, attributed their success to a commitment to quality and pricing even during inflationary periods. Unlike most products that are primarily consumed outside the home, Haldiram’s brand is enjoyed both within and outside households. Agrawal also pointed out the positive impact of offering small-sized snack packs to reach rural markets.
Haldiram’s, a family-run group, operates as three distinct entities—Haldiram’s Snacks (north), Haldiram’s Foods (west and south), and Haldiram’s Bhujiawala (east)—following a geographical split among the Agarwal family in the 1990s.
While Haldiram’s crossed the billion-dollar mark in revenues two years ago, this achievement included revenues from restaurants, accounting for a fifth of their sales. Industry insiders believe that the group’s total sales could exceed ₹11,000 crore.
The shift towards traditional Indian snacks, including namkeen, dal, chivra, bhujia, and nuts, has played a pivotal role in driving demand. Branded namkeen varieties have seen increased popularity, with brands like Haldiram’s capitalizing on this trend.
Krishnarao Buddha, Senior Category Head at Parle Products noted a shift from unbranded to organized snack players. He highlighted that the majority of Haldiram’s sales come from large bulk packs, contributing to both value and volume share.
The snacks market is categorized into four sub-segments: traditional snacks (e.g., namkeen), Western snacks (e.g., potato chips), snacks like Riblon and gathia (sold under brands like Kurkure), and extruded snacks (e.g., cheese balls). Haldiram’s has a substantial presence across these categories.
PepsiCo, a leader in the Western snacks segment, witnessed a 20% growth in this category during the previous fiscal year. The company attributes its success to a robust innovation strategy tailored to Indian tastes and preferences.
The Haldiram’s legacy began in 1937 when Ganga Bishan Agarwal ‘Bhujiawala’ opened a shop in Bikaner, Rajasthan. In April, the Competition Commission of India approved Haldiram’s Group’s demerger plan, marking another milestone in the brand’s journey.