Haldiram Planning A Mega IPO In Next 2-3 Years; Will Open More Dine-In Restaurants, Outlets Across India

Haldiram, a popular snack brand, will now launch an IPO as confirmed by Manohar Lal Agarwal, the chairman of the company. 

The company is expected to enter public markets soon and the IPO will probably be launched in the next two or three years. 

Haldiram To Launch IPO Within Next Two Or Three Years

The chairman of Haldiram was talking during an exclusive interview where he also discussed the company’s expansion plans, price hike, and a potential entry into Dalal Street. 

Haldiram is an 80-year-old snack brand which started off as a small shop in Bikaner and went on to become $1 billion company. 

While talking about the IPO Agarwal said, “Due to soaring inflation, almost everything is costlier – from transportation and fuel to raw materials. The cost of edible oil is almost double now, but we have managed to hike prices only by 10-20 percent.”

He also said that inflation is reaching new levels every day and therefore there are not much options left for the company than to increase prices further.

Haldiram offers more than 70 sweet and salty snack products along with a presence in Delhi and Nagpur. The company is FMCG (fast moving consumer goods) products are already present in international markets.

Agrawal also stated the company’s plans to expand on the retail front with restaurants. This will encourage customers to visit restaurants and eat freshly prepared food. Haldiram already has 100 restaurants in Delhi and 30-40 in Nagpur. The company plans to expand retail outlets in India and then grow the business by taking it overseas in global markets.

Haldiram Makes More Money Than McDonalds and Dominos?

It was in 2015 when we reported that Haldiram’s revenue is Rs.3900 cr which is more than the sum revenue of Domino’s (ie Rs. 1733 cr) and MacDonald’s (ie. 1390 cr). 

As Haldiram’s was set up in 1937 by Gangabisenji Agrawal, the brand has been there in the market since the time we had Britishers snacking on it. The wide variety of foods available ranges from bhel, bhujia, sev, ice cream, sweets, sherbet, to namkeens etc. Indian snacks seem to have garnered a lot of appreciation and the sales, many say are triggered by the non-Indians in foreign lands.

The brand is very old and like wine, it seems to have gotten better even after the family disputes. The snack chain has many direct outlets across India and if one notices, Haldiram’s has stopped advertising. The Word of mouth publicity has always been their goodwill bearer for the veteran snacks maker. The branded Indian snacks segment just comprises of 15% and the majority of that 15% is captured by Haldiram’s. However the foreign players like Frito Lay, Kurkure have a decent share in that 15% but both combined can’t beat Haldiram’s.