Bikaji plans to gradually execute its QSR strategy over the next 18-24 months while focusing on pricing and promotional strategies to fend off competition from regional and local players. The Bikaner-based company is eyeing expansion both geographically and through exports, with a goal of maintaining double-digit volume growth for the next decade.
In contrast to its competitor Haldiram’s, which is rapidly expanding its QSR chain, Bikaji is taking a more patient approach. According to Rishabh Jain, the CFO of Bikaner, the company has established two restaurants in Mumbai and intends to launch trials after commissioning its frozen plant in Bikaner. The plan is to start expanding the QSR business in nearby areas like Rajasthan before branching out further, leveraging the strength of the Bikaji brand to offer quality and taste at the right price point.
Despite the company’s positive performance with a 5.1% growth in volumes in the second quarter of FY24, it is still facing competition from smaller, local, and unorganized players. To overcome this, Bikaji is offering discounts on its flagship product, Bikaneri Bhujia, and passing on the benefits of cost savings to customers. Moving forward, the company acknowledges that facing competition is inevitable and plans to expand beyond its key states of Rajasthan, Bihar, and Assam.
Bikaji remains optimistic about the growth opportunities in its packaged snacks and sweets business in India, which it estimates to be a ₹7,000 crore industry. With its volumes growing at a compounded annual growth rate of 20% over the past decade, Bikaji aims to sustain double-digit growth over the next ten years. The company also sees potential for exports and is focused on expanding its presence nationwide.
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