Haldiram Bhujiawala Raises Rs 235 Crore from Bharat Value Fund to Expand Reach and Growth

• ByStartupStory     |    November 8, 2024

Kolkata-based packaged snack company, Haldiram Bhujiawala, renowned for its Prabhuji brand, has successfully raised Rs 235 crore through a private placement with Pantomath’s Bharat Value Fund (BVF). The investment, which provides the fund with a minority stake, will be pivotal in expanding Haldiram Bhujiawala’s operations and increasing shareholder value.

Founded in 1992 by Manish Agarwal and Prabhu Shankar Agarwal, the company recorded a revenue of Rs 473 crore for FY23, with profits dipping to Rs 1.7 crore during the same period. The company operates under the well-known Haldiram’s Prabhuji and its internet-first Prabhuji Online brand. Offering a portfolio of over 100 SKUs, the company has built strong market recognition in Eastern and North Eastern India. It also operates quick service restaurants in West Bengal and several North Eastern states.

Commenting on the growth trajectory and partnership with BVF, Manish Agarwal, Managing Director of Haldiram Bhujiawala, said, “In the last 60+ years, we have cultivated a loyal customer base by offering delectable snacks and sweets. Our company has been a trendsetter, revolutionizing food habits and tastes of India.” He added, “Leveraging our industry insights alongside BVF’s support, we are strategically positioned to enhance shareholder value and drive growth. This partnership lays a solid foundation for generating long-term economic benefits, ensuring a prosperous future for all stakeholders.”

Despite facing competition from larger market players like Nagpur-based Haldiram, Annapurna Snacks, and others, Haldiram Bhujiawala has developed a strong distribution network. The company serves approximately 2,000 distributors, reaching over 2 lakh retailers across West Bengal, Bihar, Jharkhand, and North Eastern India. In addition to this, it operates 19 retail outlets and 60 franchise stores.

The snacks market is on a strong growth trajectory, with estimates indicating it will be worth Rs 42,600 crore by FY24, growing at a Compound Annual Growth Rate (CAGR) of 11%. Haldiram Bhujiawala aims to leverage this growth potential by enhancing its product offerings and expanding its presence.

Madhu Lunawat, Chief Investment Officer of Bharat Value Fund, expressed enthusiasm about the partnership, stating, “We are pleased to partner with Haldiram Bhujiawala Limited. With over six decades of market insight since its founding as a proprietorship in 1958, the company has a deep understanding of consumer behaviour and market trends.” Lunawat also highlighted, “The new generation’s sharp focus on the modern brand, ‘Prabhuji,’ is particularly noteworthy. We are highly optimistic about the food, FMCG, and consumer goods sectors, and Haldiram is well-positioned to achieve substantial growth in the years ahead.”

This marks BVF’s sixth investment in the mid-market segment, where it backs companies demonstrating profitable growth. The fund’s recent investments include Millennium Babycares, the maker of the popular brand Bumtum.

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