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Bikaji Foods Success Story From Small Retail To IPO

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Shri Shivratan Agarwal  bravely decided to take the road less travelled in the late 1980’s. He was the 3rd generation  of the iconic Bhujia maker Haldiram. Breaking away from this brand and starting a new brand was never going to be easy. He created a new identity for himself, and this led to the birth of the brand Bikaji. Three decades later Bikaji is a beloved brand for bhujia and savoury snacks in India as well as the rest of the world.

Shri Agarwal’s vision was to give the world a taste of Aslee Parampara meaning authentic tradition. He desired to reach  each and every consumer with authentic Indian taste, that reflected India’s culture and values. Over the years, Bikaji has managed to win hearts across the globe, with its power of ethnic-snacking. Today, Bikaji stands for authentic Indian taste, with diverse products and innovative packaging, adding to its commitment of taking authentic Indian taste to the world.

The Indian savoury snacks  market is worth Rs 72,800 crores and Bikaji holds 5% of the market share. Bikaji also exports to over 30 other countries. Here are some Bikaji Foods Milestones.

1986 –  Establishment of co-partnership business under the name Shivdeep Food Products

1993 – Inception of the brand Bikaji

1994 – Started exports to UAE

1995 – Changed from a partnership to a public limited company

1996 – Started exports to Australia

2006 – Amalgamation of all subsidiaries into Bikaji Foods

2008 – Opened flagship restaurant in Mumbai, Bikaji Food Junxon

2014- Raised funds through private equity from Lighthouse

2016 – Commissioned a new facility in Bikaner

2018 – Raised fund through private equity( a mix of primary and secondary) from IIFL

2019 – Appointment of Amitabh Bachchan as brand ambassador

2021 – Acquired Petunt Foods Pvt

2021 – Raised funds Lighthouse India Fund III Ltd

Bikaji had raised an astounding Rs. 900 million from Lighthouse in 2014.  Bikaji is now valued at  one billion dollars. It recently announced an IPO of  Rs.1,000 crore. The word in the street is that Bikaji is all set to topple Haldiram from its market leader position. Lighthouse Funds, IIFL and Avendus, the private equity funds  which have invested in the business, are  extremely bullish as no other company of  savoury snacks  of this scale  is listed. 

Adding to this the company has taken well thought out strategic moves in strengthening its distribution channels. They built manufacturing facilities closer to the market in Rajasthan, Assam and Karnataka. They are also coming up with different products to expand the brand. Plans for foraying into frozen snacks  and baked products are on the cards. The next generation Deepak Agarwal is focusing on Brand building and distribution.

Having won the State award for export excellence twice in a row the Bikaji team  believes that they are a dedicated team prepared  to meet all challenges, explore new growth opportunities and to continue to  put forward the best quality products in the FMCG market.

It recorded a 22% compound annual growth (CAGR) in the sales for the period 2020 to 2022. In the same period its EBITA  (earnings before interest, tax, depreciation and amortisation) grew by 21% and profit by 16%. Although the revenue grew by 23% in 2022 the company had a 16%  year on year decline in profit. As per analysts the second half of the financial year 2023 is expected to be better. 

The Bikaji Foods  initial public offering (IPO) was oversubscribed 26.67 times. The IPO  size was Rs. 881.22 cr and was listed on November 16th on the BSE and NSE. The listing price was Rs.300 per share allotted in lots of 50 shares. The IPO  generated a strong investor response as Bikaji has a strong market positioning and good brand recall.  It listed at Rs 322.8 at a premium of 8% against the issue price.  During the first half an hour of trade the stock  rose to Rs 335.00 on the BSE and Rs 334.70 on the NSE. 

1.55 crore shares of Bikaji Foods were traded on the NSE  and 7.86 lakh shares on the BSE. According to Indian Express , Pravesh Gour a Senior Technical Analyst, at Swastika Investmart said, “The issue had received a good response from investors on both the institutional as well as retail side. Nevertheless, the company’s margins are on the declining side and a P/E valuation of 95.2 looks expensive. Therefore, we advise only aggressive investors should consider making a long-term commitment to the company. Those who applied for listing gains can maintain a stop loss of Rs 310.”

Nevertheless Bikaji Foods has managed to grow from nothing to the third largest player in the savoury snacks market with the help of its strong management, innovative thinking and dedicated team.

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