India's Snack Food Market Seeing Intense Investment and Innovation
In a market valued at over ₹42,700 crore, homegrown ethnic snack food brands are witnessing significant interest from strategic investors.
Haldiram Bhujiawala, operated by the family that also owns India's largest Haldiram's brand nationally, has taken on board Bharat Value Fund (BVF), acquiring a minority stake in the firm. This deal is seen as part of the emerging trend of private equity firms backing ethnic snack players.
A year ago, Bikaji Foods picked up stakes in Bhujialalji and Ariba Foods, fueling speculation about possible M&A deals in the coming months. Several leading food brands have signaled interest in acquiring Balaji Wafers or another ethnic snacks maker.
These developments highlight India's flourishing market for snack foods as domestic gamers battle it out with established multinationals like PepsiCo.
Indian snack food companies are now experimenting with regional flavours, personalisation and better distribution channels to stay top of mind among younger consumers seeking healthier options. Multinationals like PepsiCo have introduced products featuring ragi, millets or baked snacks in response to growing demand for healthier offerings.
To capitalize on this trend, Haldiram Bhujiawala plans to expand its manufacturing capacity with the help of new funds and may eye markets beyond its stronghold, particularly West Bengal, Bihar, Jharkhand & North-Eastern regions. Haldiram's will leverage its vast retail reach - distributing through 2,000 outlets and partnering with 60 franchise stores.
Key factors such as product diversification & innovative packaging are believed to define the success of domestic food brands like Bikaji Foods International that have secured strategic backing from investors.
As private equity firms and foreign food giants continue their forays into India's snack food market, it remains to be seen how these leading ethnic snack brands maintain growth momentum in an increasingly competitive landscape.
While analysts pinpoint a rise in interest in 'healthy snacks', key performance indicators suggest no one formula will succeed - with each entity adopting unique strategies that play on regional preferences.