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Origin:
Ganga Bhisen Agarwal, fondly called Haldiram by his mother, was born in Bikaner. He
belonged to a Marwari family. His wife’s name was Champa Devi. Haldiram initially worked
in his father’s sweets and snacks shop. There he was mainly focused on selling Bhujia which
was from his aunt’s recipe book. Later, as happens in many family businesses, there began
many disputes among the family members due to which he left his home along with Champa
Devi.
He was on his own then. His wife supported him by preparing Moong Dal Namkeen at home
and he would sell those on streets to earn his livelihood in 1937.
He took his first big step in 1946 when he started his first shop in Bikaner. Bikaneri Bhujia
was his main product. To improve the taste and make the Bhujia even thinner, he added
moth floor to it. Customers loved these changes and his sales increased manifold.
After setting up his shop in Bikaner, he went to attend a wedding in Kolkata. That was his
first attempt at expanding his business. He opened a shop there and tried his hand at a
different location. Later on, business increased and so did the number of Haldiram shops.
History:
As the business of Haldiram grew, it needed more manpower and hence the sons and
grandsons of Haldiram joined in the business. There is a notable contribution to the business
by the grandson of Haldiram i.e., Shiv Kishan Agarwal. He wanted to expand the business to
international level and hence started working on the shelf life and packaging of products. He
also worked on product expansion and today there are many varieties of Haldiram products
like snacks, sweets, refreshment drinks, frozen foods and quick-service restaurants.
Haldiram has its own exclusive retail chain as well as restaurants. Coming to the exporting
part, its products are exported to several countries like Sri Lanka, UK, US etc.
Early Strategy:
Haldiram always stressed on making the products as tasty and irresistible to the client as
possible. The foremost critical changes he made to the Bhujia was making it out of moth ki
dal instead of besan, which made it a delicacy overnight as moth is exceptionally well known
and effortlessly accessible in Rajasthan. He too focused on making it the fine fresh Bhujia
we know nowadays, changing it from the fat form in which it was sold before that time. The
boy in his early days in trade too illustrated a talent for promoting by setting the cost point
such that the item was more elite and not fair considered a product, offering for 5 paise a kilo
as contradicted to the prior 2 paise beneath his granddad Bhikharam. He went ahead by
naming it ‘Dungar Sev’, after Maharaja Dungar Singh. This move added an aspirational feel
to the product and increased sales. By the early 1930s, the cost of Bhujia went up from 2
paise a kilo to 25 paise, making it an effective commerce route for the total family to live off.
Dealers on their way to Kolkata ceased buying this Bhujia for companions and family back
home and the seeds of a worldwide domain started to be sowed. Within the early 1950s,
Ganga Bhishen, along with his children (Moolchand and Rameshwar Lal), took a big step
with the help of well-wishers and opened a business in Kolkata (Haldiram Bhujiawala which
later divided into Haldiram’s Prabhuji and Haldiram) that ought to be a colossal triumph with
a brief period of time. After this point, they never looked back.
Related diversification
Haldiram, initially started its journey with namkeen snack- bhujia in year 1937. Now,
which was later diversified into various segments, viz, Frozen foods, syrups,
beverages, and fast food.
In 1985, expanded its portfolio to 70 different food segments including milk & milk
products and ready to eat snacks.
To meet the taste preferences of different regions, it came up with products targeting
different regions of India. Eq, Murrukus in South India, Bhelpuri for Western parts of
India. Products are also diversified as per occasions and festivals. It offers
‘Premium’, ‘Najarana’ and ‘Panchratan’ during festivals seasons only.
Haldiram also came up with Syrups and Sherbats to diversify into all spheres of food
segment. Currently, it offers frozen foods to customers around the globe.
Haldiram, came at a point when namkeens market was majorly unorganized. It led
the way by providing better taste and namkeen options to customers all over India.
Once it became a household name, it diversified into all kind of food segments.
Currently, Haldiram dominates a fifth portion of Indian snack market totaling
Rs32000 Cr.
In 2020, Haldiram acquired debt ridden dairy company Kwality as dairy industry in
Industry in India is highly fragmented and procurement becomes a challenge. Kwality
was already a procurer of milk and had strong relations with small dairy farmers. So,
its products like Ghee, Paneer and cheese became input for Sweets segment of
Haldiram this increasing production of value added goods. In return, as Haldiram has
strong brand presence across India, It helped strengthen the procurement network of
Kwality.
To strengthen its downstream value chain, it manages its own marketing, owns
restaurants and stores. In recent years, it has also made its presence across online
platforms.
Haldiram opened its first outlet in Chandani Chowk, Delhi in 1983. Now, it owns retail
outlets across 11 major metropolitan cities across India. Currently, it operates 50+
restaurants and retail outlets.
Haldiram never followed aggressive marketing and advertising strategy. Its belief
was a good product should speak for itself. Owing to good quality, it gained loyal
customers over the years and its brand awareness increased through word of mouth.
Currently, Haldiram runs Youtube ads to target urban customers in India. It also
promoted its brand in Bollywood movie ‘Prem Ratan Dhan Payo’. As a result, it holds
a prominent shelf space across retail outlets across Globe.
In recent years, It has made its presence across online platforms by signing up with
various food delivery partners across India, eCommerce websites and by developing
its own website. The websites offers services like placing bulk orders and quick
delivery.
Drivers of Internationalization:
Alliances:
This helps venture catalysts to increase it’s understanding and facilitation of Consumer-
Packaged Goods (CPG) Sector. Indian Fast Moving Consumer goods (FMCG) sector is
growing at rate of 8-10% with significant growth potential.Consumer Packaged goods (CPG)
comprising of goods consumed by consumers every day is a large part of FMCG sector and
the alliance aims to utilise this opportunity. This collaboration aims to provide CPG Startups
with vast knowledge and resource opportunities, Haldirams had to achieve rapid growth. The
alliance is aimed at creating an ecosystem to meet the needs of the CPG industry.
Joint Ventures:
Haldiram-Brioche Doree:
Haldiram’s had partnered with Brioche Doree, the second largest bakery chain globally,
through HR Bakers-Haldiram in 2019 to diversify into other product categories. It is the first
time Haldiram’s tied-up with a company outside the family. Haldirams started this joint
venture as the Indians customers are tending to experiment with more International
Cuisine’s and the rapid increase in the Dine-outs. They opened their first exclusive store in
Delhi. The store of the brand in India is pure vegerterain.
Haldiram’s-Futurelife:
Haldiram's started a joint venture with Futurelife, South African health food company.
Haldiram had 51% stake and Futerlife had 49% stake in the Joint Venture. With this joint
venture Haldirams wanted to expand as a healthy food brand not just a tasty Indian snack.
Futurelife aims to understand the Indian consumer behaviour and get a better sense of
flavour profiles that are better associated with Indian consumers through this joint venture.
Haldirams aim to Indianise Oats and granola just as they Indianised the western product like
Potato chips. Taste and health are never correlated in India.The Indian consumers always
preferred taste over health.
Many Multinational companies tried to enter this particular segment but failed because they
couldn’t cater products to meet Indian consumer needs and also because most of them
targeted just modern retail outlets which are just 10% of the entire retail market.
So, Haldiram’s wanted to ensure that the health products have good taste at the same time
and use their presence in 2.5 million unorganized outlets to penetrate into the market.
Haldiram’s-Futurelife launched products like granola, protein powders and oats.The
Haldiram's-Futurelife products are currently available in the North.