From Bikaneri bhujia to India's top snack empire: The Haldiram's story

From a small chawl in Bikaner to being one of the most recognisable brands in India, here's the story of Haldiram's

In the diverse and fiercely competitive landscape of the Indian food market, one name has endured the test of time and risen to unequalled success - Haldiram's. What began as a small sweet shop in Rajasthan's Bikaner has grown into an internationally renowned company, changing people's perceptions of traditional Indian snacks and sweets.

With the goal of providing high-quality traditional Indian snacks and sweets, Haldiram's set out on a path that would eventually lead to its position as one of India's most prominent food brands. The brand became famous for its delightful range of namkeens, which included bhujia, sev, and a variety of traditional sweets. The consistent quality and flavour of Haldiram's products swiftly acquired the trust and loyalty of people all over India.

 

The Agarwal family has a long and interesting history in the food industry, particularly in the realm of snacks and sweets. Six generations of entrepreneurial success have amassed a substantial fortune through their nose for spices and an uncanny ability to navigate bitter legal battles and outperform multinational corporations. Their business has become a household name in India, with a vast range of products offered under several brand names such as Haldiram's, Haldiram's Prabhuji, Bikanervala, Bhikharam Chandamal, Bikaji, and Bikano.

However, behind their astonishing success is a story of intra-family feuds and bitter legal battles. The most prominent dispute revolves around the coveted brand name Haldiram's. Several generations of the Agarwal family are entangled in court battles, each seeking the right to claim the brand's name and associated legacy. These high-stakes court disputes show the family's complexity and competition, where control over Haldiram's brand signifies financial value, pride, and recognition.

Even after all of this, how did they manage to pull off such a feat? How did they grow from a small chawl in Bikaner to being one of India's most recognisable brands? Let's take a look.
 

The dawn of Haldiram's

At 12, when most children went to school and were busy playing, Ganga Bishan Agarwal, affectionately known as Haldiram Ji, found himself engrossed in his father's bhujia business. Bikaner was no stranger to bhujia, a savoury snack made from chickpea flour or besan. But even at a young age, Haldiram's possessed a creative spark that made him different. He envisioned a unique twist to the traditional bhujia—a thinner version made from moth flour instead of besan.

In 1919, Haldiram's venture in his father's small shop became an instant success. His moth flour bhujia's peculiar flavour and texture struck a chord with the people of Bikaner, setting the groundwork for two entities that would one day generate a combined revenue of about Rs 9,000 crore.

As Haldiram's got older, he had three sons: Moolchand, Satyanarayan, and Rameshwarlal. Moolchand's sons, together with their sister Saraswati Devi, became the family legacy's torchbearers, propelling the numerous snack companies to unparalleled heights.

Also Read: Haldiram's: A Marwari success story

From Bikaner to Kolkata

In the 1950s, Ganga Bishan Agarwal set off on a voyage to the busy city of Kolkata with his sons, Satyanarayan and Rameshwarlal. There, they established the popular brand "Haldiram Bhujiawala." Shiv Kishan, Haldiram's eldest grandson, also joined them in this endeavour.

While the younger sons ran the original Bikaner shop, the business in Kolkata grew at an exponential rate, expanding beyond the realm of traditional bhujia.

The expansion of Haldiram

Between the 1960s and the 1990s, Haldiram's empire experienced significant development and transformation. Ganga Bishan eventually returned to Bikaner, handing over the reins to his sons, Rameshwarlal and Satyanarayan.

Satyanarayan opted to start his own business, establishing "Haldiram & Sons." Unfortunately, he was unable to match his father's accomplishments. Rameshwarlal, on the other hand, chose to sever ties with his brother, Moolchand, resulting in the separation of the Kolkata and Bikaner enterprises.

Prabhu and his brother, who handled the Kolkata business, were barred from using the names "Haldiram's" or "Haldiram" in Delhi.

The Haldiram's businesses now operate as separate entities, each with its own unique identity.

Meanwhile, the Delhi unit, led by Manoharlal and Madhusudan Agarwal, emerged as the revenue leader, generating about Rs 5,000 crore. The Nagpur unit, led by Shiv Kishan Agarwal, came in second with Rs 4,000 crore, while the Bikaner unit, led by Shiv Ratan Agarwal, came in third with roughly Rs 1,600 crore.

Also Read: It's all in the family
 

Haldiram's looks to expand further

Earlier on March 29, Business Standard reported that Haldiram's is looking to expand its footprint and is mulling an initial public offering (IPO) with Noida's Haldiram's Snacks and Haldiram's Nagpur in the process of merging.

The new entity is looking to invest Rs 2,000 crore to Rs 2,500 crore after the fundraising exercise over the next five years to expand its capacity.

"We don't have a concrete dialogue going on for listing at this point. We are thinking about an IPO to explore the value within the organisation. Apart from that, we are open to listening to external investors, and we are always welcome to suggestions," Avin Agarwal, director of Haldiram's Foods, said.

He added, "We are not looking to raise capital to just get cash. If at all we raise capital, that would be to expand. But right now, whatever we are doing is with internal accruals."

Haldiram's stake-sale buzz

A Reuters report on September 6 stated that the Tata Group is in talks to buy at least a 51 per cent stake in the popular Indian snack and sweets brand Haldiram's.

However, the company is not comfortable with the $10 billion valuation sought. If successfully concluded, a deal would see the Indian conglomerate directly compete with Pepsi and billionaire Mukesh Ambani's Reliance Retail," the report said.

Tata Consumer denied entering into negotiations with Haldiram's in a clarification issued to the exchanges. "The company is not in negotiations as reported in the above-referred news article," it said.

Meanwhile, Tata Consumer Products fell 1.87 per cent to Rs 862.5 at 9.20 am on September 7 after the company denied news reports that it was in talks to buy a stake in Haldiram's. The stock surged over 4 per cent in the previous session following the report about interest in Haldiram's.