5 Strategies That Made Haldiram a $10 Billion Global Brand

Initially, started as a small shop, selling traditional Indian sweets in 1937, Haldiram’s was founded by Ganga Bishen Agarwal, affectionately known as Haldiram, in Bikaner, Rajasthan, India.

The roots of the family business are in bhujia: a skinny little addictive snack made of wheat and lentils.

Contrary to popular belief, Haldiram (Ganga Bishen Agarwal) did not invent Bhujia: sweet and snack sellers in Bikaner had started making bhujia many years before Haldiram was born in 1908.

Did you know that the secret recipe that made Haldiram’s Bhujia an instant hit, was invented by his aunt and not Haldiram himself?

But what Haldiram did, was invent a new formula for making bhujia, which became an instant hit and brought early fame to the young Marwari.

The secret recipe was made by Haldiram’s aunt, and it would not be wrong to argue that Haldiram’s business owes a large part of its success to her culinary prowess.

For many years, Haldiram sold Bhujia out of a tiny shop in Bikaner. At that time, Bhujia was sold in paper cones and paper bags. Haldiram was the first sweet seller in Bikaner to make a brand out of his sweets and snacks. He started this business practice with his bhujia when he named it Dungar Sev.

Dungar Singh was a popular ruler of Bikaner and the brand gave it a royal association.

It was at a wedding in Kolkata, that Haldiram got the idea of expanding further into eastern cities of India. Hence he planned the family’s move to Kolkata, where he started with a pushcart laden with his trademark bhujia that would “sell like hotcakes” in Marwari neighbourhoods. Despite hardworking and having sharp business acumen, Ganga Agarwal (Haldiram) gradually slowed down with time and was content with being a top seller of sweets and snacks in Kolkata

It was his grandson who first saw the vision of Business growth in practices like franchising, packaging and product diversification.

His grandson, Manoharlal Agarwal, is often credited with the company’s further expansion in Nagpur, Maharashtra in 1970 by opening a shop there, placing them strategically to cater to a larger market in India.

The Agarwals expanded further up north and established their first shop in Delhi, in early 1984, But: Did you know that Haldiram’s first shop in Delhi was burnt to the ground, in the first year itself, in the anti-Sikh riots of 1984?

But the new captain, Manoharlal Agrawal persevered and restarted operations from scratch to build the biggest sweet shop brand of that decade in Delhi.

Alongside traditional sweets, Haldiram’s began offering a wider range of snacks, catering to diverse tastes and preferences. From the outset, Haldiram’s emphasised quality and hygiene, a significant differentiator in the unorganised snack market.

It was his grandson who first saw the vision of Business growth in practices like franchising, packaging and product diversification.

His grandson, Manoharlal Agarwal, is often credited with the company’s further expansion in Nagpur, Maharashtra in 1970 by opening a shop there, placing them strategically to cater to a larger market in India. They are often credited as pioneers in the Industry for using advanced packaging techniques to increase the shelf life of their perishable food products, making them suitable for long-distance distributi

In its early days, Haldiram's faced stiff competition from local sweet shops and snack producers. These competitors often imitated Haldiram's products but couldn't match their quality and hygiene standards. Haldiram's always stayed ahead of them by investing in state-of-the-art manufacturing facilities and ensuring consistent product quality. The entry of international FMCG giants into the Indian market, in the 1990s posed a significant challenge to their business expansion plans.

When global FMCG giants like PepsiCo, entered India with their snack brand Lay's and brought in substantial marketing budgets and established distribution networks. Haldiram's smartly countered this by staying true to its roots and positioning itself as an authentic Indian brand with a blend of traditional and modern snacks.

Haldiram’s saw a steady increase in revenue as it expanded its product line and distribution network. By the early 2000s, it was already a well-established brand in the Indian snack market.

Haldiram’s expanded its brand presence across various segments, including restaurants, casual dining outlets, and ready-to-eat products.

By 2017, Haldiram’s reported revenue of over ₹4,000 crores (approximately $560 Million), outpacing many multinational competitors in the Indian market, scaling to $10 Billion in 2023.. The latest generation in the family business, further expanded the business by leveraging digital tools and international distributors, thereby successfully entering overseas markets, catering to the Indian diaspora and local populations with a taste for Indian snacks.

5 Things That made Haldiram A Household Name

1. Deep Understanding of Consumer Preferences: Haldiram’s keen understanding of diverse Indian palates led to the creation of region-specific snacks. For instance, they introduced ‘Bhujia’ in North India and ‘Murukku’ in South India, catering specifically to the local preferences in these regions.
2. Consistency in Quality and Innovation: Facing the challenge of maintaining quality at scale, Haldiram’s invested heavily in automated production lines. This not only ensured consistent quality but also enabled them to introduce a variety of new products quickly.
3. Adaptation to Market Dynamics: In response to the growing health consciousness among consumers, Haldiram’s expanded its product line to include healthier snack options like baked goods and diet mixes. This move helped them tap into a new customer segment.
4. Brand Trust and Loyalty: They highlighted their commitment to traditional recipes and high-quality ingredients in their marketing campaigns, building consumer trust and loyalty.
5. Marketing and Brand Positioning: Haldiram’s strengthened its online presence, using social media platforms to engage with younger audiences. They used storytelling to showcase their rich heritage and commitment to quality, effectively differentiating themselves from both domestic and international competitors.