Market potential and the new strategies
Haldiram, the brand names that is always associated with quality product and service. It took more than six decades to become the leading manufacturer of Indian savory snacks. The savory snacks industry has been immensely through all these years to form an industry of about $425 millions. And the market potential for this industry is estimated to be around $ 1 billion. The savory snacks market is divided into organized sector and an unorganized sector. Currently, about 45 % of the market is being served by the organizes sector and the balance 55% is served by the unorganized sector.
Presently the company has 20% market share of the organized sector and overall about 7.5% of the market share, with a turnover of $30 million. With the increasing competition and demand for the product the company needs to expand its output and also its product line. The company is opening up a new plant. The project is called “Haldirams Food limited”. There would also be a change in the organizational structure. Currently it’s more centralized but in the new company it would be more decentralized, which reduces the time taken in decision-making process and would also motivate and improve self-confidence among the employees. Looking at the market potential and the new strategies adopted by the company shows that the project is most likely to be successful.
“HALDIRAM” – a name associated with discerning consumers for sweets and namkeens for the past six decades in India and abroad. It made its modest start in the beginning of way back in 1941 in Bikaner in the State of Rajasthan. The brand name “HALDIRAM BHUJIAWALA” was introduced during pre-partition era-1941 and never looked back and ventured first major step in this direction by opening up a shop in 1983 in Chandni Chowk, the main hub of commercial center in Delhi. The prime focus was to serve sweets and namkeens amongst direct consumers and the trade.
Presently the company has 20% market share of the organized sector and an overall about 7.5% of the market share, with a turnover of around $30 million.
1. BRITANNIA: Britannia, having a market share of 15% is the second largest manufacturer in the country. It owns a number of successful brands and has access to its latest technology and product range recently the company has entered into the savory snacks segment. According to the sources the company is not doing well right now. But with a strong strategy for the future, the company is a serious threat.
2. FRITO LAYS LEHAR NAMKEEN: Frito lay, is snack Food Company under the Pepsi group. Frito lay has three brands-lays, cheetos and Lehar. Sources claim that the company has a 65% market share in the branded potato chips market while lehar has a market share of 2.50% in the branded savory market 3. BIKAJI: Established in 1985, the company concentrates on Rajasthan, which is the main market for savory snack. The price of their products is lower than others, which helps them to become more prices competitive. Even then their market share is below haldiram, mainly because it is more focused on one particular state only.
4. BIKANO: Bikano is a very small company established in Delhi since 1980. The company has recently entered into savory snacks market. The quality of the product is average. 5. OTHRES: The rest of the organized market is shared by hundreds and of very small manufacturers spread all over the country like Priya Gold, Kakaji, and Uncle Chips etc.