Prabhuji snack maker Haldiram Bhujiawala raises Rs 235 Cr

Kolkata-based packaged snack company Haldiram Bhujiawala has raised Rs 235 crore through a private placement from Pantomath’s Bharat Value Fund (BVF) for a minority stake. 

The snacks maker, which retails under the ‘Prabhuji’ brand, registered a revenue of Rs 473 crore for FY23 while profits declined to Rs 1.7 crore for the year, according to data sourced from research platform Tracxn. 

The company was established in 1992 by Manish Agarwal and Prabhu Shankar Agarwal and retails Haldiram’s Prabhuji and internet-first brand, Prabhuji Online. It has a portfolio of over 100 SKUs, with strong recognition in the Eastern and North Eastern markets. It also operates quick service restaurants in West Bengal and other North Eastern states. 

“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,” said Manish Agarwal, Managing Director of Haldiram Bhujiawala in a statement.

“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,” Agarwal added.

The snack maker competes in a market dominated by larger players like Nagpur-based Haldiram, Annapurna Snacks, and others. Haldiram Bhujiawala claims to have a distribution network of approximately 2000 distributors servicing over two lakh retailers across West Bengal, Bihar, Jharkhand, and North East India. It also operates 19 retail outlets and 60 franchise stores. 

The snacks market is estimated to be a Rs 42,600 crore market by FY24, with a CAGR (Compound Annual Growth Rate) of 11%, dominated by packaged snack makers, according to data shared in the statement.

“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,” said Madhu Lunawat, CIO of BHarat Value Fund. 

“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,” Lunawat added.

This marks BVF’s sixth overall investment in the mid-market segment, backing profitable growth companies. It had also recently backed Millenium Babycares, maker of the flagship brand Bumtum.