Bikaji Foods - Will The Indian Sweet Tooth Like The Flavour Of Packaged Sweets? Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.Bikaji Foods International Ltd. is the third largest ethnic snacks company in India. The company is headquartered in Rajasthan and has eight own manufacturing facilities (five in Rajasthan and one each in Assam, Karnataka and Bihar). Bikaji’s distribution network includes ~46 super stockists and 507 direct distributors in India. We recently visited the company’s manufacturing plant in Bikaner, Rajasthan in order to get some insights with respect to the manufacturing process. We also interacted with Bikaji management to know more about the current demand scenario and the company’s future plans. The following are the key takeaways:The Karni plant in Rajasthan is the company’s largest manufacturing plant and manufactures all product categories that the company deals in - from Bhujia to Western Snacks to Sweets. Annual installed capacity of this plant is ~57,600 million tonne for Bhujia and 50,520 mt and 24,000 mt for namkeen and packaged sweets, respectively. Capacity utilisation of this plant is ~60% in single shift of ~10 hours per day. Wastage is minimum at ~0.04% as largely the entire ethnic snacks production is automated. The Indian sweets market is currently valued at Rs 593 billion (FY22) with 10%/90% organised/unorganised market share. It is expected to grow at ~9% compound annual growth rate to Rs 846 billion by FY26-end, with 12%/88% organised/unorganised market share. The organised market is expected to grow faster at ~14.7% compared to the ~9% market growth over the same period. The company believes that packaged sweets manufacturing requires certain amount of skills, which are currently not available with the companies that are predominantly making western snacks and hence presents a huge growth opportunity..Click on the attachment to read the full report:.Dodla Dairy - Cyclical Headwinds Creating Deep Value In A Steady Compounder: Systematix Initiates Coverage.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bikaji Foods - Will The Indian Sweet Tooth Like The Flavour Of Packaged Sweets? Nirmal Bang

Rasgulla, Gulab Jamun, Soan Papdi contribute ~90% to the overall packaged sweets sales of the company.

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