Street gets ready for some snacks 😋
What’s poppin — Indian local snack-king Bikaji Foods is all set to file docs for its upcoming IPO sometime this week — looking to raise over ₹1,000 crores from public investors, at a $1 billion valuation!
Like most iconic Indian food brands, Bikaji had a modest start in 1987, out selling bhujia in the town of Bikaner, RJ. The brand steadily grew with the rise of the ready-to-eat food category in India, expanding its portfolio to over 300+ products that even include frozen foods.
Bikaji’s manufacturing is spread across 3 states, producing over 400 tonnes of snacks daily, with sales volumes growing about ~14% through the last 5 years. Revenues for FY20 topped just over ₹1,000 crores. How does your D2C snack brand stack up?
Anyway, the ready to eat snack market in India is a $13 billion opportunity, growing 8-9% a year. Rise in disposable income of the middle class is a strong tailwind. Growth in international market is strong too. But competition is equally intense — with Haldirams, Balaji Wafers, as well as giants like HUL, Britannia, fighting it out for more share.
Bottomline — looking at investor enthusiasm for Bector’s foods, and other similar bids in the last couple years, odds are Bikaji outshines too.
