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Bikaji Foods IPO: How traditional savouries captured the organised packaged snacks market in India

The organised traditional snacks market in India is expected to double to Rs 20,400 crore by fiscal 2026, according to Bikaji Foods, aided by rapid urbanisation, a shift towards branded products and export demand.

November 03, 2022 / 05:36 PM IST
Bikaji Foods is the largest manufacturer of Bikaneri bhujia with an annual production of 29,380 tonnes. (Image credit: www.bikaji.com)

Bikaji Foods is the largest manufacturer of Bikaneri bhujia with an annual production of 29,380 tonnes. (Image credit: www.bikaji.com)

A few years back, chips and kurkure packets would mostly adorn aisles in grocery shops across the country but now they jostle with enticingly packed bhujia, sev and other local savouries.

The upcoming initial public offering (IPO) of Bikaji Foods has put the spotlight on the huge inroads made by traditional snacks in the organised packaged snacks segment.

Till a few years ago, the traditional segment was mostly unorganised but bhujia, chana chor garam, ganthia, bhel puri, among others, have made their place in the organised packaged snacks market. Though western snacks like chips still dominate packaged snacks, with a 57.2 percent market share, traditional Indian sweets now command a 42.8 percent share. Of this, the traditional savoury bhujia has a 15.9 percent share.

A few years ago, these snacks were sold by small regional players, often loose, while organised players like Haldiram’s, Bikaji Foods, Bikano had a small share in the packaged snacks market.