Mr Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt Ltd
The snack industry is burgeoning and the Indian snacks market is witnessing significant year-on-year growth. Presently, the market for snacks in India stands at an estimated $3 billion, with the organised sector holding half of the market share and growing at an impressive rate of 15-20 per cent annually. This hyper-growth in the snack market has resulted in intense competition among snack companies, driving them to focus on innovation, robust distribution networks, and attractive price promotions to maintain their competitive edge. New Delhi-headquartered savouries and sweets snacks manufacturer Bikanervala Foods has been a very prominent player in this list. In a recent interaction with Nuffoods Spectrum, Manish Aggarwal, Director, Bikanervala Foods Pvt Ltd shares the latest developments under the brand ‘Bikano’. Edited excerpts:
Where does Bikano position itself in the Indian Snack and packaged food market?
India has emerged as one of the world’s top five rapidly growing economies, owing to increasing urbanisation, evolving consumer preferences, and a vast domestic market catering to diverse product demands. The value of food and beverage packaging industry in India was valued at approximately $33.22 billion in 2020, projected to reach an impressive $156.25 billion by 2026, demonstrating a noteworthy compound annual growth rate (CAGR) of 29.88 per cent throughout the forecast period. Indian consumers have realised the convenience of substituting light meals with snacks, and they are more than willing to pay a premium for high-quality private and branded products, thereby creating extensive opportunities for manufacturers and retailers alike
Bikano positions itself in the market as a well-established and popular snack and packaged food manufacturing company in India. It is known for its expansion strategies and market penetration in both the northern and southern regions of the country.
In the south, the company’s immediate focus is on making inroads into the entire Telangana market and gradually expanding to other southern states. Bikano plans to cater to the southern taste palette by launching specific products alongside its existing range of snacks and sweets.
In the north and eastern regions, Bikano is equally focused on growth and expansion. The company has established a new plant in Greater Noida to meet the increasing demand for its products in the northern market. By improving supply chain efficiency and reducing transportation costs, Bikano aims to offer a comprehensive product line and quicker delivery times, particularly to suppliers in Tier 2 and 3 cities and rural areas.
Overall, Bikano positions itself as a market leader that continuously seeks opportunities for growth, expansion, and meeting the diverse tastes and preferences of consumers across different regions in India.
What are the recent developments in the company in terms of product development? Are there any new products in the pipeline?
We have recently introduced a new addition to our product range called “Magic Bhujia.” This flavour was developed to meet the growing demand and diverse preferences of our valued customers. “Magic Bhujia” boasts an exquisite blend of spices, available in convenient pack sizes of 18 gm, 38 gm, and 250 gm.
In an effort to expand our global presence, we have also launched a range of frozen products in the international market. Furthermore, we are thrilled to announce our venture into the Indian Spices category with the launch of our new sub-brand, “Swad Anusar.” Building upon decades of culinary expertise and a rich heritage of flavours, “Swad Anusar” will introduce an array of meticulously blended spices, promising to elevate the culinary experience for households across India.
What can you tell us about your newly launched plant in Greater Noida?
Recently, as part of our long-term expansion strategy focused on the northern and eastern regions, we inaugurated our newest plant in Greater Noida. Our primary objective behind this initiative is to meet the escalating demand for our products in these regions and broaden our market coverage. Particularly, we aim to cater to the growing demand for our popular products such as bhujia, mixture, and various snacks.
The establishment of this new facility in Greater Noida holds significant importance as it allows us to enhance our supply chain efficiency, reduce transportation costs, and offer improved services to our customers in the northern part of the country. Additionally, we envision competing effectively with other snacking companies in the region by expanding our product line and ensuring quicker delivery times for our suppliers in Tier 2 and 3 cities, as well as rural areas.
As part of our commitment to the region’s growth, we also plan to augment our workforce, providing valuable job opportunities through the launch of this new project in Greater Noida. With an investment of 400 crores, we are dedicated to establishing a robust presence and achieving remarkable success in this strategic location.
In line with our ambitious goals, we aspire to achieve a turnover of 1800 crores by the fiscal year 2023-24, demonstrating our unwavering determination to grow and prosper in the market. We are enthusiastic about the future and look forward to creating a positive impact with our expanded operations in Greater Noida.
How is the company marching toward the goal of Rs 1,800 crore turnover by FY 2023-24?
We had a turnover of around Rs 1,250 crore in the financial year ending March 31, 2022. To reach a turnover of Rs 1,800 crore by FY 2023-24, we are strategically marching forward with a series of well-thought-out initiatives. Our first step involves the expansion of our manufacturing facilities. By establishing new plants in key locations like Hyderabad and Greater Noida, we are significantly increasing our production capacity, enabling us to meet the surging demand for our products in both the northern and southern regions of India, as well as in the international market.
Furthermore, we are determined to penetrate new markets and broaden our customer base. A prime example of this is our recent introduction of a range of frozen products in the international market, aimed at catering not only to the Indian diaspora but also to local citizens who are increasingly embracing our offerings. By diversifying our product line and offering an array of delectable options, we are attracting more consumers and fostering repeat purchases.
Quality assurance is another key pillar of our strategy. We are committed to maintaining the highest standards of product quality and safety. We have implemented rigorous measures, such as multiple quality checks, advanced quick frozen technology, and obtaining relevant certifications to ensure customer satisfaction and build trust among our consumers.
Optimising supply chain efficiency is another focal point for us at Bikano. By streamlining our supply chain, we are not only reducing transportation costs but also enhancing operational efficiency. This enables us to better serve our customers in the northern region of India, thus strengthening our position in the market.
In addition to these strategies, we are keen on creating a competitive advantage over other snacking companies in the region. By offering a more comprehensive product line and ensuring quicker delivery times to suppliers in Tier 2 and 3 cities, as well as rural areas, we are poised to become a preferred choice for consumers and business partners alike.
How are you targetting the international market?
We have successfully introduced a line of frozen items in the international market with the specific objective of achieving a remarkable 40 per cent year-on-year (YoY) growth in our export sales. This strategic move is designed to capitalise on the vast opportunities that the international market presents, and we are optimistic about projecting sales of Rs 200 crore in the fiscal year 2023-24.