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Akshay Rajawat    

Surat, India

I am CA student and along side perusing the CFA (U.S.). I have a 6 month experience in Equity Research where i have done my internship programme in the same. I am keen to write an articles on Equity.

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Contributor since: 2022








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Bikaji Foods International Limited

A Business Analysis of Bikaji Foods

About Bikaji

Bikaji Foods International Limited is one of India's largest fast-moving consumer goods ("FMCG") brands. The company's product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range and cookies. In the six months that ended June 30, 2022, the company sold more than 300 products under the Bikaji brand.

The company was the largest manufacturer of Bikaneri bhujia with an annual production of 29,380 tonnes, and we were the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2022. The company has an international footprint, selling Indian snacks and sweets, and is among the fastest-growing companies in the Indian organised snacks market.

The company has over the years established market leadership in the core states of Rajasthan, Assam and Bihar with an extensive reach. It has gradually expanded its footprint across India, with operations across 23 states and three union territories as of June 30, 2022.

In the six months ended June 30, 2022, The company has exported the products to 21 international countries, including North America, Europe, the Middle East, Africa, and Asia Pacific, representing 3.20% of our sales of food products in such period.

Bikaji Foods International Limited has six operational manufacturing facilities that are operated by us, with four facilities located in Bikaner (Rajasthan), one in Guwahati (Assam), one facility in Tumakuru (Tumkur) (Karnataka) held through the subsidiary Petunt Food Processors Private Limited to cater to the southern markets in India.

Business Overview

The company is the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and are the second fastest growing company in the Indian organised snacks market. In Fiscal 2022, they were largest manufacturer of Bikaneri bhujia with annual production of 29,380 tonnes, and they were the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2022. The company is also the third largest player in the organised sweets market with annual capacity of 24,000 tonnes for packaged rasgulla, 23,040 tonnes for soan papdi and 12,000 tonnes for gulab jamun. The company have given a novel twist to classic Indian snacks with a contemporary taste along with maintaining the regional flavours to address the evolving consumer preferences in India and internationally.

The product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range and cookies. In the three months ended June 30, 2022, we sold more than 300 products under the Bikaji brand. The following table sets forth information on our product mix in the periods indicated:

The company have a successful track record of over three decades in the Indian snacks industry which has enabled us to develop an effective business model with stringent control over processes, including raw ingredient procurement, manufacturing operations, inventory management across their large range of products and SKUs, management of distribution logistics across India, as well as managing export sales. The company also have an information technology system that enables them to coordinate their operations from automated manufacturing to logistics and transport, inventory management, invoicing, customer relationship management, distributor management, cost management which help in making effective and meaningful decisions. They adhere to stringent product quality standards and closely track consumer preferences across segments from cross-section of markets in India and abroad.

The company have established a track of consistent revenue growth and profitability, even during periods impacted by the COVID-19 pandemic. The company have recorded an increase in sales of food products at a CAGR of 22.25% between Fiscal 2020 and Fiscal 2022, and our EBITDA and profit after tax increased at a CAGR of 21.45% and 16.13%, respectively, in such period. The following table sets forth certain key performance indicators for the periods indicated: 

Business Model

Product Categories


Journey So Far

Product Categories and Leadership

Reach and Network

Business Strength

Well-established brand with pan-India recognition
The company sell all of their products under the well-established Bikaji brand, focusing on a diverse range of quality products, authentic ethnic Indian taste, innovative packaging, and effective pricing strategies covering all key price points. The company believe that these qualities have enabled them to develop strong brand recognition and consumer loyalty in their key markets in India and abroad. According to the F&S Report, we are among the top three Indian ethnic snack manufacturers in India.

A significant part of their sale of food products is derived from sales of family packs (i.e., SKUs priced above ₹ 10), which were ₹ 6,407.36 million, ₹ 8,185.86 million, ₹ 9,705.11 million, ₹ 1,940.42 million and ₹ 2,236.23 million and accounted for 59.76%, 62.64%, 60.57%, 58.43% and 53.64% of their sale of food products in Fiscal 2020, 2021 and 2022, and in the three months ended June 30, 2021 and June 30, 2022, respectively. The company believe this reflects the strength of their brand as a home consumption and planned purchase product. Amongst the competitors, the company are the market leader in family pack segment, with family pack segment constituting 60.57% of their sale of food products in Fiscal 2022, as compared to their other SKUs of ₹ 5 and ₹ 10 packs

Diversified product portfolio focused on various consumer segments and markets
The company believe that their understanding of the Indian taste palate complements their product development capabilities, which has allowed them to develop a comprehensive portfolio of a variety of Indian snack foods and sweets. As of June 30, 2022, their diversified product portfolio included more than 300 products across all their product segments. The company have launched packages of various sizes for their products. For example, Bhujia and namkeen products are available in packages as small as a pouch that is 14-25 grams for ₹ 5 to a one (1) kilogram pouch for ₹ 350. 

Extensive pan-India and global distribution network, arrangements with reputed retail chains and growing ecommerce and exports channel
The company sell their products primarily through general trade, modern trade, and e-commerce platform, as well as exports. The table below provides a channel-wise breakdown of their sales of food products in Fiscal 2020, 2021 and 2022, and in the three months ended June 30, 2021 and June 30, 2022:

Extensive distribution network in India
Over the years, the company have developed a large pan-India distribution network. As of June 30, 2022, they had six depots, 38 superstockists, 416 direct and 1,956 indirect distributors that work with their superstockists, located across 23 states and four union territories in India. The company have developed longstanding relationships with most of their superstockists and direct distributors and they play a key role in ensuring that their products reach the end retailer in an efficient manner. The company consistently engage with their superstockists and direct distributors as well as end retailers to collect product feedback and insights on market trends to drive their product development initiatives. Their implement an integrated inventory and distribution management systems and sales force automation solutions to further improve the efficiency in their supply chain. The company believe that the market knowledge, financial resources and time required to develop such a distribution network present significant entry barrier for competition. The company have also focused on developing strategic distribution channels, such as sale of their products at railway stations across India. 

Growing e-commerce channel
E-commence platform channels include listing of their products on various large popular ecommerce platforms, distribution start-ups as well as their own ecommerce platform. Sales through ecommerce channels in Fiscal 2020, 2021 and 2022 and in the three months ended June 30, 2021 and June 30, 2022 were ₹ 29.81 million, ₹ 102.12 million, ₹ 186.84 million, ₹ 34.53 million and ₹ 34.18 million and contributed 0.28%, 0.78%, 1.17%, 1.04% and 0.82%, respectively of their sales of food products in such periods.

Consistent financial performance

Management Of The Company

Industry Analysis

Overview of the Packaged Food in India
Packaged Food
India’s packaged food business is currently valued at ₹ 4,240 billion. It has grown significantly in last five years on account of changing lifestyles, rising incomes and urbanization. In Fiscal 2015, the packaged food retail revenue was worth ₹ 2,434 billion and has registered a CAGR of approximately 8.3% from Fiscal 2015 to Fiscal 2022. It is estimated to grow at CAGR of 8% in next five years to reach at ₹ 5,798 billion.

Category-wise Packaged Food Market
In 2022, the packaged food industry was valued at approximately ₹ 4.24 trillion. Dairy products contribute to 38.8% i.e., ₹ 1.64 trillion followed by snacks and sweets and biscuits segments at 32.3% and 14.5% respectively.

Overview of Indian Savoury Snacks and Sweets Market
Savoury Snacks and Sweets Market in India
Indian Savoury Snacks market is valued at ₹ 751 billion in 2022 and is expected to reach ₹ 1,227 billion by 2026 at CAGR 13%. Indian savoury snacks market can be broadly segmented into western snacks and traditional snacks. Traditional snacks market which is valued at ₹ 366 billion, contributes around 48% to the total savoury snacks market. Traditional snacks market comprises of namkeens, bhujia and ethnic snacks such as dry samosa, kachori, chakli, etc. Western snacks market is valued at ₹ 385 billion in 2022 and consists of chips, extruders and a new variety of snacks called as “bridges” which has local taste but western look.\

Snacking in between the meals has always been traditional in Indian culture and COVID-19 forced lockdown has increased this habit of snacking multi-fold and is the driving the growth of this industry. Further in 2022, footfall and activity levels across all touchpoints (retails, institutional, etc) have returned to pre-COVID levels. This trend seems to continue in Indian market. The Indian savoury snacks market is estimated to reach ₹ 1,227 billion (as per above) by 2026 with the organized players capturing major market share due to increased concerns of hygiene and safety.

Packaged Savoury Snacks Market in India

The ₹ 751 billion Indian savoury and snacks market is characterized by a large number of unorganized players across the product segments. Traditionally each type of snack is very specific to each region; hence, many small companies cater to this market. These players have a slim portfolio of products, usually of a single category and in many cases only provide traditional snacks items. They also operate in a small geographic range confined to a single state or city and primarily ride on the lower price and the traditional taste.

However, with time, large fast-moving consumer goods (“FMCG”) companies understood the potential of the snacks market and entered it in a big way, using their existing supply chain to their advantage. These companies are typically characterized by a large product portfolio across multiple product categories, aggressive advertisements and promotions, active research and development, etc. Due to demonetization, goods and services (“GST”) rules and the COVID-19 pandemic many small and regional unorganized players were forced to shut down business which has resulted in providing impetus to organized players.

Despite 43.7% of packaged savoury snacks market being unorganized, organized players such as Haldiram, Pepsico- Lays, Balaji, Bikaji have strong foothold across the country and major market share in regional pockets. Reverse migration has helped to move consumption trends to India’s smaller cities helping in brisk sale of packaged goods in these regions.

The organized segment has been strengthening its position in the market over the last few years, with new product launches and product innovations that have been largely targeted at the urban as well as rural consumer. The organized savoury snacks market was valued at ₹ 196 billion in 2015 and is ₹ 423 billion in 2022. It is further expected to grow at CAGR 15% till 2026. The role of advertisement and promotions cannot be overlooked when we talk about the growth of organized sector. With deep pockets, the organized segment can afford celebrity endorsements and engagements with mega events in India. This has also been instrumental to success of the organized sector.

Western snacks still dominate the organized market with 57.2% of market share in the Indian savoury snacks segment. Ethnic namkeen and snacks contribute to 26.9% of the organized savoury market followed by ethnic bhujia which is at 15.9% in overall savoury snacks market in 2022.

Ethnic namkeen and snack items typically include namkeen, chaklis, a variety of masala or fried nuts, etc. and they are very region-specific even within India. But now, with urbanization and working population migration to different regions the demand for regional snacks is increasing in pan-India. This has led to domestic expansion of many regional players like Bikaji, Chitale, etc.

Another trend in the foods market is the packaging and sales of products that were previously not sold as packaged item. Typical examples are Bhakarwadi, samosas, Bhel Puri by Haldiram’s Aam Panna by Paperboat, packaged coconut water, etc. This trend is expected to continue as companies discover processes to increase the shelf life while retaining the authentic taste of traditional foods. Companies are also leveraging product innovation to compete within as well as outside the category. Haldiram’s, Bikaji, Balaji Wafers Private Limited, and Bikanerwala are some of the biggest players in the traditional snacks space with larger presence, while other players have more regional coverage. 

Financial Performance of the Company


  • High competition
  • Growing E Com channels and hence, consumer now shifting on online buyings
  • Volatility in the raw material price as a result
  • Currency volatility





I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Source - Company's Website, Investor Presentation, Bikaji RHP. Disc - Given article in the report is not an recommendation as it's for knowledge purpose only.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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