‘Amitji loves Bikaji’—a jingle that sticks. With the festive season in full swing, the demand for snacks and namkeen has risen, and it is believed that India’s love for snacks will remain constant throughout the year. Legacy brands are rolling up their sleeves to capture the market, targeting emerging consumers like Gen-Z and millennials who shift toward healthier choices. In 2021, the ethnic namkeen and snacks market in India was valued at about Rs 10,800 crore. The namkeen and snack market in the country is forecasted to grow to about Rs 19,500 crore in 2025.
Bikaji Foods’ revenue from operations rose 18.47% to Rs 2329.34 crore in FY24 from Rs 1966.07 crore in FY23. Its net profit rose 93.9% to Rs 263.46 crore in FY24 from Rs 135.85 crore in FY23.
In a conversation with BrandWagon Online, Neha Rao, VP- marketing, Bikaji, talks about the company’s advertising plans, the launch of its new ad campaign with actor Amitabh Bachchan, and its growth in the sweets space, among others. (Edited Excerpts)
What was the thought behind your new campaign ‘Bikaji Khao, London Jao’, and how effective it is in customer engagement and sales?
We’ve always been open to media and are among the few in our industry that actively advertise—many competitors don’t. Previously, we focused on building brand awareness with a brand ambassador and campaigns rather than direct consumer connection. Our tagline, ‘Amit Ji loves Bikaji,’ is popular, with its catchy appeal lingering with consumers.
Now, we’re taking a step toward direct consumer engagement with a campaign titled ‘Bikaji Khao, London Jao,’ where participants have a chance to win a trip to London. Everyone gets a reward—no ‘better luck next time’—through a spin-and-win format with a cashback of Rs 75 or Rs 100, which is substantial compared to our package prices. For instance, a 400-gram pack could offer up to Rs 100 cashback, along with Borosil vouchers and other prizes like TVs.
Our focus on impulse and family pack segments, especially products priced at Rs 20 and above, has fostered a loyal customer base. Partnering with family-oriented brands like Borosil adds extra appeal, as our loyalists are valued in this campaign aimed at rewarding their support.
Consumers may not feel motivated to participate in such campaigns, as these rewards seem unattainable. What has been the consumer response to this campaign, and did it match expectations?
During campaign planning, we focused on ensuring customers saw these prizes as real and attainable. In all retail communications, we highlighted the number of daily giveaways, from TVs to trips, to show it’s not just a single big prize at the end but ongoing wins. This helped combat the ‘I never get lucky’ mindset, encouraging people to try their luck every day.
We’ve introduced this through our 400-gram and 1-kg packs, especially with sweets for the festive season. The idea was to reach new customers as well as regulars, offering a reward with every purchase—whether it’s a London trip, TV, or cashback. Some customers, for example, have won multiple prizes on different days, which has boosted excitement and engagement.
The campaign is also expanding our brand reach. We’re leaders in certain states and, through on-ground engagement in places like Bihar and digital promotions like Diljit Dosanjh’s video, we’re increasing visibility in newer regions and among younger audiences. Digital engagement has been vital for building a connection, and making consumers feel like they’re interacting with the brand, not just a product.
Our goal was to ensure that consumers feel rewarded, even with small prizes, like Rs 100 cashback on a Rs 120 pack. This ‘assured gift’ concept has been central to making everyone feel valued, which has fueled the campaign’s success and strengthened our brand’s position in core markets.
What is your distribution strategy? Traditionally, it has been offline, but how has the company adapted to online distribution channels?
Our business is primarily divided between general trade and newer e-commerce channels. Rajasthan and Bihar have been largely general trade markets, and as a brand that started with general trade (GT), it holds a special place for us. However, as consumer habits evolve, we are increasingly present in modern trade (MT) as well.
In Rajasthan and Bihar—our core states—you’ll see us in locations where general trade is prevalent. But in other areas, modern trade has a stronger presence, and we are readily available there too. Additionally, our products are available on e-commerce platforms like Amazon, Blinkit, Swiggy Instamart, and Zepto. So, as consumers shift their shopping preferences, we are ensuring that we reach them wherever they are, whether that’s on Instagram, WhatsApp, or any other platform.
As a consumer myself, I understand that sometimes you just want the convenience of delivery to your doorstep rather than going out to shop. There are times when I enjoy strolling through a supermarket, and other days I just want everything brought to me at home. We aim to provide this flexibility to our customers by maintaining an active presence across channels.
For instance, around Diwali, we try to offer promotions for our consumers, ensuring our availability at all touchpoints. From a business perspective, general trade remains our largest channel, though e-commerce and modern trade are growing quickly. General trade may not see the same rate of growth as e-commerce, but the overall market is expanding. We witness growth in e-commerce every year.
The industry is also progressing thanks to the efforts of major players. With Zomato already listed and Swiggy moving in that direction, the industry is thriving. Whether a consumer can find our products in a nearby store or through Blinkit, accessibility is what matters most to us. As a brand, our priority is to ensure that our customers can reach us on any platform they prefer.
What are your top-selling products in the ethnic snacks category?
Our top-selling product is, without a doubt, Bhujiya—it’s iconic for our brand. Over time, we’ve expanded the Namkeen category with sub-brands like Kuch-Kuch, Sub Kuch, and Tana-Tan (our aloo Bhujiya), and we’re now the largest Bhujiya producers in the country.
In sweets, there’s been a major shift from unorganised to organised sectors, especially post-COVID. Packaged sweets are gaining popularity, with more consumers opting for modern trade and quick commerce for convenience during festivals like Diwali. Retail giants like DMart and Reliance are leading this shift, allowing us to grow our sweets category and explore new offerings.
We have also seen a change in consumer preferences toward smaller pack sizes, driven by smaller households and individual consumption. While e-commerce and quick commerce platforms promote smaller SKUs, larger packs remain popular in traditional Kirana stores.
The festive gifting market has grown notably, with gift packs ranging from Rs 210 to Rs 2,500. Though gifting isn’t yet a major revenue driver, we see its potential and are actively investing to expand it into a substantial category.
What role does the gifting segment play in your revenue strategy now compared to five years ago, and how has your approach evolved?
It’s important to note that gifting was not a significant contributor to our revenue five years ago, but there’s been a paradigm shift. This change has led to increased focus and resource mobilisation, along with innovation within our product lines.
What about the shift towards healthier options among consumers? What product lines are you offering this festive season?
We are indeed catering to the growing segment of health-conscious consumers. We offer a range of dry fruit-based desserts, such as Kaju and date-based sweets, featuring roasted nuts. Our products are available at various price points, catering to both mass and premium segments.
While these healthier options are gaining traction, they currently represent a smaller share of overall sales compared to traditional products. The organised sector has more market share than the unorganised sector in India, but we recognise the importance of these healthier products for the future.
To meet this demand, we’ve developed a multi-grain bhujia that includes a mix of grains like jowar. Additionally, we have roasted crushed peanuts as an alternative to traditional snacks. While this healthier category is still developing, we’re committed to evolving our product offerings to align with consumer preferences over the next decade.
What are the company’s expansion plans?
We’ve already been expanding. Recently, we acquired Ariba Foods, a company based in Ujjain that specialises in frozen food. We also have a plant in Bikaner. With this setup, our focus is on improving exports, now that we have our large-scale facility. Across the country, we operate multiple plants; in fact, Prime Minister Modi recently inaugurated three of our plants in different cities under the PLI scheme, including ones in Patna and Raipur.
We aim to push forward with ethnic snacks, a category growing at a steady pace. We also see potential in Western snacks, although they currently represent a smaller portion of our portfolio. As we grow, we’re focusing on specific states and categories to strengthen our market presence. Our goal is to become a market leader across various segments, creating a comprehensive product offering for consumers.