Haldiram

By: Ravi Gera( MBA)

Haldiram

By: Ravi Gera( MBA)

HALDIRAM NAMKEEM

History

Haldiram began as a tiny shop in Bikaner(popularly known as Haldiram), opened a small sweet shop in Bikaner, a smalldistrict in Rajasthan. Bikaner had a large number of sweet shops selling sweets as well as namkeens. 'Bhujia sev,' a saltysnack prepared by Ganga Biswas very popular among the residents of Bikaner and was also purchased by tourists coming to Bikaner.

In 1941, the name 'Haldiram's Bhujiawala'was used for the first time.In 1950, Prabhu Shankar Agarwal (Prabhu), along with hisfather Rameshwar Lal Agarwal (son of Ganga Bishen)manufacturing unit for sweets and namkeens in Kolkata. The success of thismotivated Prabhu to upgrade its machinery to improve the quality of its products. As demand for Haldiram's products increased, it was decided to scale up the company's manufacturing and

In 1970, a large manufacturing unit was set up in Nagpur inMaharashtra (India). In 1983, a retail outlet was set up in New Delhi.became very popular not only among the Delhiites but also among tourists visiting Delhi.

Haldiram's was able to achieve significant growth during the1992, a manufacturing unit with a retail outlet attached to it was set upoutskirts of Delhi. A year later, Haldiram's syrups and crushes were successfully launched in the Indian market. In 1995, a restaurant was1997, realizing the potential of namkeens, the company set up a manufacturing unit in Delhi exclusively for making namkeens

Over a period spanning 65 years, the Haldiram's Group (Haldiram's) had emerged as a household name for readysince its relatively humble beginning in 1937 as a small time sweet shop in

HALDIRAM NAMKEEM

Haldiram began as a tiny shop in Bikaner In 1937, Ganga Bishen Agarwal, (popularly known as Haldiram), opened a small sweet shop in Bikaner, a smalldistrict in Rajasthan. Bikaner had a large number of sweet shops selling sweets as well as namkeens. 'Bhujia sev,' a saltysnack prepared by Ganga Biswas very popular among the residents of Bikaner and was also purchased by

In 1941, the name 'Haldiram's Bhujiawala'was used for the first time.In 1950, Prabhu Shankar Agarwal (Prabhu), along with hisfather Rameshwar Lal Agarwal (son of Ganga Bishen), expanded the business by establishing a small

unit for sweets and namkeens in Kolkata. The success of thismotivated Prabhu to upgrade its machinery to improve the quality of its products.

diram's products increased, it was decided to scale up the and distribution activities.

In 1970, a large manufacturing unit was set up in Nagpur in the state of Maharashtra (India). In 1983, a retail outlet was set up in New Delhi.became very popular not only among the Delhiites but also among tourists visiting

Haldiram's was able to achieve significant growth during the 1980s and 1990s. In 1992, a manufacturing unit with a retail outlet attached to it was set upoutskirts of Delhi. A year later, Haldiram's syrups and crushes were successfully launched in the Indian market. In 1995, a restaurant was opened in New Delhi. In 1997, realizing the potential of namkeens, the company set up a manufacturing unit

making namkeens.

Over a period spanning 65 years, the Haldiram's Group (Haldiram's) had emerged as a household name for ready-to-eat snack foods in India. It had come a long way since its relatively humble beginning in 1937 as a small time sweet shop in

In 1937, Ganga Bishen Agarwal, (popularly known as Haldiram), opened a small sweet shop in Bikaner, a smalldistrict in Rajasthan. Bikaner had a large number of sweet shops selling sweets as well as namkeens. 'Bhujia sev,' a saltysnack prepared by Ganga Bishen, was very popular among the residents of Bikaner and was also purchased by

In 1941, the name 'Haldiram's Bhujiawala'was used for the first time.In 1950, Prabhu Shankar Agarwal (Prabhu), along with hisfather Rameshwar Lal

the business by establishing a small unit for sweets and namkeens in Kolkata. The success of this unit

motivated Prabhu to upgrade its machinery to improve the quality of its products. diram's products increased, it was decided to scale up the

the state of Maharashtra (India). In 1983, a retail outlet was set up in New Delhi. The outlet became very popular not only among the Delhiites but also among tourists visiting

1980s and 1990s. In 1992, a manufacturing unit with a retail outlet attached to it was set up in the outskirts of Delhi. A year later, Haldiram's syrups and crushes were successfully

opened in New Delhi. In 1997, realizing the potential of namkeens, the company set up a manufacturing unit

Over a period spanning 65 years, the Haldiram's Group (Haldiram's) had emerged eat snack foods in India. It had come a long way

since its relatively humble beginning in 1937 as a small time sweet shop in

Bikaner, Rajasthan. In2001, the turnover of the Haldiram's was Rs.400 Croreapprox rs1500 crore in 2008several countries all over the world.Product range

Namkeens Sherbats Cookies Papad Pani-puri Bhel-puri Sweets Taka-tak Chips

Few firsts by Haldirama. It was the first company in India to brand 'namkeens‘.b. The group also pioneered new ways of packaging namkeens.c. Its packaging techniques increased the shelf life of namkeens from less

than a week to more than six months.d. It was also one of the first companies in India to open a restaurant in New

Delhi offering traditional Indian snack fooditems such a"chatpapri," and so on, whichnon-resident Indians and other foreig

In2001, the turnover of the Haldiram's was Rs.400 Crore

approx rs1500 crore in 2008-09. The group had presence not only in India but in several countries all over the world.

It was the first company in India to brand 'namkeens‘.The group also pioneered new ways of packaging namkeens.Its packaging techniques increased the shelf life of namkeens from less than a week to more than six months.It was also one of the first companies in India to open a restaurant in New Delhi offering traditional Indian snack fooditems such as "panipuri,"

so on, which catered to the needs of hygiene conscious resident Indians and other foreign customers.

In2001, the turnover of the Haldiram's was Rs.400 Crore and . The group had presence not only in India but in

The group also pioneered new ways of packaging namkeens.Its packaging techniques increased the shelf life of namkeens from less

It was also one of the first companies in India to open a restaurant in New s "panipuri,"

catered to the needs of hygiene conscious

ExportsHaldiram’s exports have been growing at the rate of 40% for the past five years and the company clocked an annual export turnover of Rs.200 crores. Company is very particular about their quality and hygiene and hence it standards set by FDA, USA and Safety act, U.K. Every raw material undergoes rigorous testing.The company has won many awards like Brand Equity award, Successful Brand award and was conferred the International Food Award. By the Trofeo International Alimentacion of Barcelona for its quality

Major export markets are-North AmericaSouth AmericaWestern EuropeEastern EuropeEastern AsiaSoutheast AsiaMiddle EastAfricaOceania

Haldiram’s exports have been growing at the rate of 40% for the past five years and the company clocked an annual export turnover of Rs.200 crores. Company is very particular about their quality and hygiene and hence it standards set by FDA, USA and Safety act, U.K. Every raw material undergoes

The company has won many awards like Brand Equity award, Successful Brand award and was conferred the International Food Award. By the Trofeo

nal Alimentacion of Barcelona for its quality.

-

Haldiram’s exports have been growing at the rate of 40% for the past five years and the company clocked an annual export turnover of Rs.200 crores. Company is very particular about their quality and hygiene and hence it meets the standards set by FDA, USA and Safety act, U.K. Every raw material undergoes

The company has won many awards like Brand Equity award, Successful Brand award and was conferred the International Food Award. By the Trofeo

Sector

The size of the packaged food market in India is expected to reach $20 billion by 2014, while the share of packaged food in the food and grocery market is expected to touch 5 per cent by the same time.

Factors that have fuelled this industry’s growth are the arrival of foomultinationals, rising popularity of quicktechnological advancement, changing urban lifestyles and so on.

The main categories of packaged food are bakery products, canned/dried processed food, frozen processed food, meal replacement products and condiments. Some emerging new categories in this segment are processed dairy products, frozen ready-to-eat foods, diet snacks, processed meat, probiotic drinks and so on.

Some key players in this industry are Hindustan Unbiscuits, pulses, instant beverages), Nestle (instant coffee, milk and milk products, ready-to-eat foods), PepsiCo (aerated drinks, fruit juices, cereals, snacks) and Haldirams (sweets, namkeens, syrups, crushes, snacks).

In this report we will stress on Indian package snacks and sweets because Haldiram mainly deals with exports of Indian packaged snacks and sweets.

In this product category Haldiram has 3

1. BikajiEstablished in 1987 as shivdeep foodlike bhujia, soan papdi, cornflakes chivda etc.

2. Lehar by Pepsico. wasand new traditional Flavours. Was built on communication, irresistible taste and modern imagery .

Lehar was re-launched in 2006kyonki oil taza" with a promise to deliver good taste through the use of fresh oil in manufacturing.

The size of the packaged food market in India is estimated at $10 billion and is expected to reach $20 billion by 2014, while the share of packaged food in the food and grocery market is expected to touch 5 per cent by the same time.

Factors that have fuelled this industry’s growth are the arrival of food multinationals, rising popularity of quick-service restaurants, modern retail trade, technological advancement, changing urban lifestyles and so on.

The main categories of packaged food are bakery products, canned/dried processed ood, meal replacement products and condiments. Some

emerging new categories in this segment are processed dairy products, frozen eat foods, diet snacks, processed meat, probiotic drinks and so on.

Some key players in this industry are Hindustan Unilever (tea, instant coffee, biscuits, pulses, instant beverages), Nestle (instant coffee, milk and milk products,

eat foods), PepsiCo (aerated drinks, fruit juices, cereals, snacks) and Haldirams (sweets, namkeens, syrups, crushes, snacks).

is report we will stress on Indian package snacks and sweets because Haldiram mainly deals with exports of Indian packaged snacks and sweets.

product category Haldiram has 3 major competitors-

Established in 1987 as shivdeep food products the company has products like bhujia, soan papdi, cornflakes chivda etc.

was launched in 1996 , Innovated through small packs and new traditional Flavours. Was built on communication, irresistible taste and modern imagery .

launched in 2006 and positioned on the plank of "Taste zyaada kyonki oil taza" with a promise to deliver good taste through the use of fresh

estimated at $10 billion and is expected to reach $20 billion by 2014, while the share of packaged food in the food and grocery market is expected to touch 5 per cent by the same time.

d service restaurants, modern retail trade,

The main categories of packaged food are bakery products, canned/dried processed ood, meal replacement products and condiments. Some

emerging new categories in this segment are processed dairy products, frozen eat foods, diet snacks, processed meat, probiotic drinks and so on.

ilever (tea, instant coffee, biscuits, pulses, instant beverages), Nestle (instant coffee, milk and milk products,

eat foods), PepsiCo (aerated drinks, fruit juices, cereals, snacks) and

is report we will stress on Indian package snacks and sweets because Haldiram

products the company has products

, Innovated through small packs and new traditional Flavours. Was built on communication, irresistible taste

and positioned on the plank of "Taste zyaada kyonki oil taza" with a promise to deliver good taste through the use of fresh

3. Local sweet shops which do

hold in areas around them. EgThane.

Push and pull strategyHaldiram has used both of above mentioned strategies to increase in sales and become a dominant player in the market, however it has always been more inclined towards push strategy.

Push

Push can be defined as promotional strategy makes use of a company's sales force and trade promotion activities to

The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.

Haldiram has used both of above mentioned strategies to increase in sales and become a dominant player in the market, however it has always been more inclined towards push strategy.

Haldiram's developed a strong distribution network to ensure the widest possible reach for its products in India as well as overseas. From the manufacturing unit, the company's finished goods were passed on to carrying and forwarding (C&F) agents. C&F agents passed on the proretail outlets. While the Delhi unit of Haldiram's had 25 C&F agents and 700 distributors in India, the Nagpur unit had 25 C&F agents and 375 distributors.

Haldiram's also had 35 sole distributors in the internatiNagpur units together catered to 0.6 million retail outlets in India. C&F agents received a commission of around 5%, while distributors earned margins ranging from 8% to 10%. The retail outlets earned margins ranging from 14% to the retail outlet level, margins varied according to the weight of packs sold.

Retailers earned more margins ranging from 25% to 30% by selling 30 gms pouches (priced at Rs.5) compared to the packs of higher weights. Apart from the

Local sweet shops which do not have pan-India presence they do have goo

areas around them. Eg- Jhama in Navi Mumbai and Tip Top in

ush and pull strategyHaldiram has used both of above mentioned strategies to increase in sales and become a dominant player in the market, however it has always been more inclined

promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product.

The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.

Haldiram has used both of above mentioned strategies to increase in sales and become a dominant player in the market, however it has always been more inclined

a strong distribution network to ensure the widest possible reach for its products in India as well as overseas. From the manufacturing unit, the company's finished goods were passed on to carrying and forwarding (C&F) agents. C&F agents passed on the products to distributors, who shipped them to retail outlets. While the Delhi unit of Haldiram's had 25 C&F agents and 700 distributors in India, the Nagpur unit had 25 C&F agents and 375 distributors.

Haldiram's also had 35 sole distributors in the international market. The Delhi and Nagpur units together catered to 0.6 million retail outlets in India. C&F agents received a commission of around 5%, while distributors earned margins ranging from 8% to 10%. The retail outlets earned margins ranging from 14% to the retail outlet level, margins varied according to the weight of packs sold.

Retailers earned more margins ranging from 25% to 30% by selling 30 gms pouches (priced at Rs.5) compared to the packs of higher weights. Apart from the

presence they do have good Jhama in Navi Mumbai and Tip Top in

Haldiram has used both of above mentioned strategies to increase in sales and become a dominant player in the market, however it has always been more inclined

promotional strategy makes use of a company's sales force for a product.

The producer promotes the product to wholesalers, the wholesalers promote it to

Haldiram has used both of above mentioned strategies to increase in sales and become a dominant player in the market, however it has always been more inclined

a strong distribution network to ensure the widest possible reach for its products in India as well as overseas. From the manufacturing unit, the company's finished goods were passed on to carrying and forwarding (C&F)

ducts to distributors, who shipped them to retail outlets. While the Delhi unit of Haldiram's had 25 C&F agents and 700 distributors in India, the Nagpur unit had 25 C&F agents and 375 distributors.

onal market. The Delhi and Nagpur units together catered to 0.6 million retail outlets in India. C&F agents received a commission of around 5%, while distributors earned margins ranging from 8% to 10%. The retail outlets earned margins ranging from 14% to 30%. At the retail outlet level, margins varied according to the weight of packs sold.

Retailers earned more margins ranging from 25% to 30% by selling 30 gms pouches (priced at Rs.5) compared to the packs of higher weights. Apart from the

exclusive showrooms owned by Haldiram's, the company offered its products through retail outlets such as supermarkets, sweet shops, provision stores, bakeries and ice cream parlors. The products were also available in public places such as railway stations and bus station

Haldiram's products enjoyed phenomenal goodwill and stockists competed with each other to stock its products. Moreover, sweet shops and bakeries stocked Haldiram's products despite the fact that the compwith their own products.

Haldiram's also offered its products through the Internet. The company tied up with indiatimes.com, a website owned by the Times of India groupproducts over the Internet. Haldiram's products could be ordered through a host of other websites in India and abroad.Giftstoindia.com, giftssmashhits.com, tohfatoindia.com and enabled people residing abroad to send Haldiram's gift packs to specified locations in India. Region-specific websites enabled people to send gifts to specified regions. These include indiamart.com (Delhi and surrounding areas), mumbaiflowersgifts.com (Mumbai), and chennaiflowersgifts.com (Chennai and other parts of Tamilnadu). These websites competed on issues such as delivery time, which varied between 48 hrs to one week, delivery charges (some websites offered free delivery of products) messages along with the gift packs).

Although haldiram has undertaken promotional activity but none has been on such scale.

Pull

Pull can be defined as g strategy is one that requires high spending on advand consumer promotion to build up consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers

oms owned by Haldiram's, the company offered its products

through retail outlets such as supermarkets, sweet shops, provision stores, bakeries and ice cream parlors. The products were also available in public places such as railway stations and bus stations that accounted for a sizeable amount of its sales.

Haldiram's products enjoyed phenomenal goodwill and stockists competed with each other to stock its products. Moreover, sweet shops and bakeries stocked Haldiram's products despite the fact that the company's products were competing

Haldiram's also offered its products through the Internet. The company tied up , a website owned by the Times of India group8 to sell its

products over the Internet. Haldiram's products could be ordered through a host of other websites in India and abroad.Giftstoindia.com, giftssmashhits.com, tohfatoindia.com and channelindia.com enabled people residing abroad to send Haldiram's gift packs to specified locations

specific websites enabled people to send gifts to specified regions. These include indiamart.com (Delhi and surrounding areas),

ersgifts.com (Mumbai), and chennaiflowersgifts.com (Chennai and other parts of Tamilnadu). These websites competed on issues such as delivery time, which varied between 48 hrs to one week, delivery charges (some websites offered free delivery of products) and value added services (like sending personal messages along with the gift packs).

ram has undertaken promotional activity but none has been on such

g strategy is one that requires high spending on advand consumer promotion to build up consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers

oms owned by Haldiram's, the company offered its products through retail outlets such as supermarkets, sweet shops, provision stores, bakeries and ice cream parlors. The products were also available in public places such as

s that accounted for a sizeable amount of its sales.

Haldiram's products enjoyed phenomenal goodwill and stockists competed with each other to stock its products. Moreover, sweet shops and bakeries stocked

any's products were competing

Haldiram's also offered its products through the Internet. The company tied up to sell its

products over the Internet. Haldiram's products could be ordered through a host of

channelindia.com enabled people residing abroad to send Haldiram's gift packs to specified locations

specific websites enabled people to send gifts to specified regions.

ersgifts.com (Mumbai), and chennaiflowersgifts.com (Chennai and other parts of Tamilnadu). These websites competed on issues such as delivery time, which varied between 48 hrs to one week, delivery charges (some websites

and value added services (like sending personal

ram has undertaken promotional activity but none has been on such

g strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers

Haldiram's product promotion had been low key until competition intensified in the snack foods market. The company tied with 'Profile Advertising'products. Consequently, attractive posters, brochures and mailers were designed to enhance the visibility of the Haldiram's brand.Different varieties of posters were designed to appeal to the masses. The punch line for Haldiram's products was, 'Alwthe entire range of Haldiram's sweets and namkeens were published in the print media (magazines and newspapers). These advertisements had captions such as 'millions of tongues can't go wrong,' 'What are you wait'Keeping your taste buds on their toes.'

To increase the visibility of the Haldiram's brand, the company placed its hoardings in high traffic areas such as train stations and bus stations. Posters were designed for display on public tfocused on individual products were developed. Captions such as 'yeh corn hain' (this is corn), 'chota samosa Kashmiri mix khoob jamega' (this namkeen item will gel well) and 'oozing with taste' (for Rasgoolas) promoted individual products.the Haldiram's brand, the company placed its hoardings in high traffic areas such as train stations and bus stations. Posters were designed for display on public transport vehicles such as buses, and hoardings, focused on individual products were developed. Captions such as 'yeh comazaa' (small samosa10- big entertainment), 'yeh Kashmiri mix khoob jamega' (this namkeen item will gel well) and 'oozing with taste' (for Rasgoolas) promoted individual products.

Conclusion

Haldiram is a renowned name in branded Indian packaged food industry. Company is a leading player in India and also reaches out to its patrons across the globe.

The company has been growing at a phenomenal rate and has achieved great success due its high quality and tasty packaged Indian snacks and namkeens.

product promotion had been low key until competition intensified in the

snack foods market. The company tied with 'Profile Advertising'9 for promotiproducts. Consequently, attractive posters, brochures and mailers were designed to enhance the visibility of the Haldiram's brand.Different varieties of posters were designed to appeal to the masses. The punch line for Haldiram's products was, 'Always in good taste.' Advertisements depicting the entire range of Haldiram's sweets and namkeens were published in the print media (magazines and newspapers). These advertisements had captions such as 'millions of tongues can't go wrong,' 'What are you waiting for, Diwali?' and 'Keeping your taste buds on their toes.'

To increase the visibility of the Haldiram's brand, the company placed its hoardings in high traffic areas such as train stations and bus stations. Posters were designed for display on public transport vehicles such as buses, and hoardings, focused on individual products were developed. Captions such as 'yeh corn hain' (this is corn), 'chota samosa - big mazaa' (small samosa10- big entertainment), 'yeh Kashmiri mix khoob jamega' (this namkeen item will gel well) and 'oozing with taste' (for Rasgoolas) promoted individual products. To increase the visibility of

company placed its hoardings in high traffic areas such as train stations and bus stations. Posters were designed for display on public transport vehicles such as buses, and hoardings, focused on individual products were developed. Captions such as 'yeh corn hain' (this is corn), 'chota samosa

big entertainment), 'yeh Kashmiri mix khoob jamega' (this well) and 'oozing with taste' (for Rasgoolas) promoted

Haldiram is a renowned name in branded Indian packaged food industry. Company is a leading player in India and also reaches out to its patrons across the globe.

company has been growing at a phenomenal rate and has achieved great success due its high quality and tasty packaged Indian snacks and namkeens.

product promotion had been low key until competition intensified in the for promoting its

products. Consequently, attractive posters, brochures and mailers were designed to

Different varieties of posters were designed to appeal to the masses. The punch ays in good taste.' Advertisements depicting

the entire range of Haldiram's sweets and namkeens were published in the print media (magazines and newspapers). These advertisements had captions such as

ing for, Diwali?' and

To increase the visibility of the Haldiram's brand, the company placed its hoardings in high traffic areas such as train stations and bus stations. Posters were

ransport vehicles such as buses, and hoardings, focused on individual products were developed. Captions such as 'yeh corn hain'

big entertainment), 'yeh Kashmiri mix khoob jamega' (this namkeen item will gel well) and 'oozing with

To increase the visibility of company placed its hoardings in high traffic areas such

as train stations and bus stations. Posters were designed for display on public transport vehicles such as buses, and hoardings, focused on individual products

rn hain' (this is corn), 'chota samosa - big big entertainment), 'yeh Kashmiri mix khoob jamega' (this well) and 'oozing with taste' (for Rasgoolas) promoted

Haldiram is a renowned name in branded Indian packaged food industry. Company is a leading player in India and also reaches out to its patrons across the globe.

company has been growing at a phenomenal rate and has achieved great success due its high quality and tasty packaged Indian snacks and namkeens.