About the Company:
Bikaji Foods is the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and are the second fastest growing company in the Indian organised snacks market.
Company’s product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range and cookies.
In Fiscal 2022, company is largest manufacturer of Bikaneri bhujia with annual production of 29,380 tonnes, and the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2022.
Company is also the third largest player in the organised sweets market with annual capacity of 24,000 tonnes for packaged rasgulla, 23,040 tonnes for soan papdi and 12,000 tonnes for gulab jamun.
Company over the years established market leadership in the ethnic snacks market in our core states of Rajasthan, Assam and Bihar with extensive reach, and have gradually expanded our footprint across India, with operations across 23 states and four union territories as of June 30, 2022.
Company also exports products to 21 international countries, including countries in North America, Europe, Middle East, Africa, and Asia Pacific, representing 3.20% of our sales of food products in such period.
Company’s online presence:
Company has recently launched Bikaji Café and Bikaji Funkeen brands to promote our western snack segment and also launched online retail platform www.bikaji.com in February 2020.
In 2008, company also set up a restaurant-cum-retail store Bikaji Food Junxon in Mumbai.
Company’s Distribution Network:
Over the years, company has developed a large pan-India distribution network.
As of June 30, 2022, company had six depots, 38 superstockists, 416 direct and 1,956 indirect distributors that work with our superstockists, located across 23 states and four union territories in India.
In our core markets of Rajasthan, Assam and Bihar, we have established deep penetration in Fiscal 2022 and enjoy approximately 45%, approximately 58% and approximately 29% respectively, of the market share of total organized Indian ethnic snack category in such states.
Further, we also started supplying products for sale in Indian army canteens from August 2022.
Company’s Revenue from various Channels:
Company’s Revenue from various categories:
Company’s Manufacturing facilities:
Company has seven operational manufacturing facilities that are operated by us, with four facilities located in Bikaner (Rajasthan), one in Guwahati (Assam), one facility in Tumakuru (Tumkur) (Karnataka).
Company’s Production Capacity and Capacity Utilization:
Competition in the business:
Company face intense competition in the Indian snack food market, from various domestic and multinational companies in India.
Some of our key competitors include Haldiram Foods International Private Ltd, Bikanerwala, Prataap Snacks Ltd, Balaji Wafers Private Ltd, ITC, Pepsico India Holdings Private Ltd and DFM Foods Ltd.
India Sweet market and Papad Organised Market – Market Share, 2022:
Management Team:
- Mr. Shiv Ratan Agarwal (Designation: Chairman and Whole-time Director)
- Mr. Deepak Agarwal (Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs.881 cr)
Each of the Selling Shareholders will be entitled to the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Positives for the Company:
Well-established brand with pan-India recognition.
- Company sell all of the products under our well-established Bikaji brand, focusing on a diverse range of quality products, authentic ethnic Indian taste, innovative packaging, and effective pricing strategies covering all key price points.
- These qualities have enabled company to develop strong brand recognition and consumer loyalty in our key markets in India and abroad.
Diversified product portfolio focused on various consumer segments and markets.
- Company has a diversified product portfolio included more than 300 products across all our product segments.
- Company has launched packages of various sizes for our products. For example, our Bhujia and namkeen products are available in packages as small as a pouch that is 14 -25 grams for Rs.5 to a one (1) kilogram pouch for Rs.350.
Drive growth in focus markets leveraging existing and proposed facilities.
- Company’s focus markets include Uttar Pradesh, Punjab, Haryana and Delhi in north India and Karnataka and Telangana in south India.
- Company is in the process of strengthening the distribution base in these markets by adding more superstockists and distributors in more cities and towns.
- Company entered in this geography by initially focusing on our top selling products and now we are expanding our category, both western and ethnic which would further help in gaining presence and market share.
- Company has experienced significant growth in recent years in states such as Uttar Pradesh, Punjab, Haryana and Delhi in north India and Karnataka and Telangana in south India.
Financials of the Company:
| (in Crores) | FY 20 | FY 21 | FY 22 | 30th June 2022 |
|---|---|---|---|---|
| Revenue | 1082.9 | 1322.2 | 1621.4 | 423.8 |
| Net Profit | 56.3 | 90.3 | 76.0 | 15.6 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 3rd November 2022 |
| Issue Closes on:. | 7th November 2022 |
| Issue Price | Rs.285 – 300 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 50 shares |
| Minimum Investment | Rs.15000 |
| Issue Constitutes | 11.77% |
| Issue Size | Rs.881 cr ($106 million) |
| Market Cap | Rs.7485 cr ($ 900 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 2,93,73,984 |
| Equity Shares Prior to the issue | 24,95,09,880 |
| Equity Shares after the issue | 24,95,09,880 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 11th November 2022 |
| Initiation of Refunds | on or Before 14th November 2022 |
| Credit of Equity Shares: | on or Before 15th November 2022 |
| Listing Date: | on or Before 16th November 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.15 | 101 | 9.51 | 32.83 |
| Company Contact Info: |
|---|
| Bikaji Foods International Limited F 196-199, F 178 and E 188, Bichhwal Industrial Area, Bikaner – 334 006 Rajasthan, India Email: cs@bikaji.com Telephone: +91 151 – 2250350 Website: www.bikaji.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 247 Park, L.B.S. Marg, Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 /+91 810 811 4949 E-mail: bikaji.ipo@linkintime.co.in Investor E-mail: bikaji.ipo@linkintime.co.in Website: www.linkintime.co.in |
