Haldiram’s: How a small sweet shop in Bikaner became a global snack brand

Spanning six generations, the Agarwal family’s knack for spices and adeptness in handling legal disputes has made Haldiram’s a global brand.

Tata Consumer Products and Haldiram’s might have refuted reports that the former was seeking to acquire a controlling share in the Indian snacks and food company, but the speculation has nevertheless drawn attention to the country’s branded snack industry, in which Haldiram’s is a leading player.

On September 6, Reuters reported that Tata Consumer Products was discussing the acquisition of a 51 percent share in Haldiram’s. However, the $10 billion valuation proposed by Haldiram’s was reportedly a point of contention for Tata.

In FY22, Nagpur-based Haldiram Foods International Private Limited, which operates in the country’s Western market, reported revenue of Rs 3,622 crore, while its sister entity Haldiram Snacks Private Limited, which operates in the North, registered earnings of Rs 5,248 crore. Combined, their total revenue amounted to Rs 8,870 crore.

Humble beginnings

In 1918, the bylanes of Bikaner, Rajasthan, witnessed the inception of Haldiram’s, a humble shop offering traditional sweets and namkeen, founded by Shri Ganga Bhishen Agarwal. At a time when Bikaner was saturated with bhujia vendors, Haldiram’s differentiated itself and became a household name.

Spanning six generations of business acumen, the Agarwal family’s knack for spices and adeptness in handling legal disputes has led to it accumulating a vast amount of wealth. Outperforming global giants, their venture has cemented its place in Indian households.

Haldiram’s offers an array of products under recognisable brands such as Haldiram’s, Haldiram’s Prabhuji, Bikanervala, Bhikharam Chandamal, Bikaji, and Bikano.

Internecine battles

But behind the notable achievements is a story of internal family disputes and protracted legal wrangles. The primary battle is over the prestigious Haldiram’s brand name. Multiple Agarwal family members find themselves in legal tussles, each aiming to secure the brand’s name and its rich legacy. These legal battles underscore the intricate dynamics and rivalry within the family.

In the early 1990s, the Agarwal siblings—grandchildren of Ganga Bhisen Agarwal—divided Haldiram’s outlets geographically for independent operations. Manoharlal and Madhusudan took the North; Shiv Kishan managed the South and West. Prabhu Shankar and Ashok oversaw the east Indian markets.

In 2013, due to a court ruling, Prabhu Shankar and Ashok were prohibited from using the ‘Haldiram’s Bhujiawala’ brand. They subsequently rebranded to ‘Prabhuji: From the house of Haldiram’s’.

Taking on global giants

Haldiram's, now split into three geographical divisions encompassing around 12 companies, recorded revenue of Rs 7,130 crore in FY19. This achievement placed it in direct competition with the likes of Hindustan Unilever’s food and refreshment segment. The previous fiscal year, FY18, saw the brand amass sales worth Rs 6,241 crore.

In 2015, the US FDA banned select Haldiram's products, citing high pesticide levels. This move drew significant media attention, sparking debates on the quality and safety of Indian food exports.

Despite internal family disputes occasionally casting a shadow over its legacy, Haldiram’s has taken the branded snacking category to new heights. Analysts note that the growth in the branded snack market is clear due to the shift from unbranded to branded products, boosting revenue for major brands. “Another advantage for branded goods is their strong presence on e-commerce platforms, where they outperform regional and loose brands,” said Kaustubh Pawaskar, Deputy Vice President, Fundamental Research at Sharekhan by BNP Paribas.

As branded snacking companies invest in promotions and brand building, they capture a larger market share. Factors such as increasing urbanisation, higher per capita income, and a growing brand consciousness among consumers are further fuelling the move from unbranded to branded products, he added.

Today, the Agarwal family’s heritage is recognised in the Indian food sector. Their brands are staples in many households, with their products consistently purchased by countless consumers nationwide. While the family may be navigating legal challenges, the Haldiram’s brand has come to symbolise the resilience and innovation characteristic of Indian business dynasties.