HALDIRAM's

Submitted by:
Group 10
Aditya Lal
Ankita Rai
Manvi Goyal
Paridhi Modi
Rohan Gupta

Indian Savory Snacks

Industry
Savory snacks have been a part of Indian food habit, since almost ages. They are
normally consumed at teatime.

The variety is almost mind-boggling with specialties from all regions, which
have gained national acceptance.

The total snack industry both organized and unorganized is estimated to be

around Rs 4,500-5,000 crore.

It is estimated to grow around $ 1 billion.

Organized Sector 45%and

Unorganized Sector 55%

The organized snack industry is growing at the rate of 30% and is pegged at Rs
2,000 crore.

Haldirams The Company

Haldirams began as a tiny shop in Bikaner.

By 1982, it has set up a shop in Delhi, which grew manifold over a decade by word of
mouth.

Haldirams is a way of life for Indians no matter which country they live in.

Presently, a $ 4 million brand and is a familiar sight not only in India, but also on
shelves across USA, UK, and the Middle-East.

Today, haldirams can be seen on shelf Tesco, Sipney, Carrefour etc.

Presently, company has 20% share in organized market, behind them comes Pepsi Co.s
Lehar Namkeen, in savory snacks industry.

It enjoys 8% market share overall, with a turnover of around 30 million.

SWOT Analysis Haldirams

Strength
1.
2.
3.
4.
5.
6.
7.

Quality
Knowledge
Manpower
Pricing
Latest technology
Packaging
Trust of the consumer

Opportunity
1.
2.

3.

4.

Growing Food Industry.

Changes in the Consumers Taste and
Preferences.
Increase in the Purchasing Power of
Families.
Prospects for Exports.

Weaknesses
1.
2.
3.

Low Advertising Budget.

Traditional Management Style.
Manufacturing process not
completely automatic.

Threat
1.
2.
3.

Availability of substitute goods.

Health conscious or awareness.
Increasing competition from Indian
and MNC food companies.

Product Profile

The product profile consist of whole range of varieties from Sweets

to Namkeens, from Sherbets to Chips, and also the Papads and
Minute Khanna.

We have chosen to do our project on SAVORY SNACKS, also

known as NAMKEENS.

The product is also differentiated in terms of their weight and prices.

There are different distribution channel within a product category

with respect to their size and weight.

This is one of its kinds distribution network in India, as quoted by

Mr. K.K.Goyal, Country Sales Manager, Haldiram.

The Namkeen Business

Today, haldirams has perfected and packaged over 30 varieties, which are
immensely popular all over the world.

The Namkeens business contributes to 70% of Haldirams total sales.

The major direct competitor in this segment is Bikanerwalas Bikaji

Bhujiya, with his low priced namkeens.

In the organized sector the major MNCs running for the pie of their
business is PepsiCo's Lehar Namkeen.

Other competitors are the unorganized sector of local Halwais but they
cannot match the quality, production and economies of scale of
Haldirams.

Target Market - Namkeens

The target market of Haldiram is middle aged household women.

The main customers of the savory snacks are in the age group of 30-60 and the
range of the income is around $U.S. 100 per month and above.

As women are the buyers for household needs and the deciding factor on what
to be served to the guests, Haldiram targets them for their Namkeens.

Further, there is something for everyone in Haldirams varied product range,

such as Takatak & Whoopies for kids, Minute Khanna for those ready-to-eat
food needs, and the all famous Mithai for everyone at home.

In Mithai also, they have come with sugar free sweets for the diabetic or
health conscious customers.

Market coverage

Due to the legal contract within the family haldiram cannot extend to South and
West India under this brand name, as they are catered by Haldirams Nagpur.

For this reason, they are coming up with separate brand that can enter the other part
of the Indian market. Along with this, haldiram also exports to various other
countries.

In India, haldiram covers the Northern and North-Eastern India. Presently they can
sell only in the following states:

DELHI
PUNJAB
HIMACHAL PRADESH
JAMMU & KASHMIR
UTTAR PRADESH
BIHAR
ASSAM
MIZORAM
NAGALAND

Plant Location and Production

Capacity

Presently, they have 4 plants in and around Delhi.

Production capacity of these plants on daily basis is as following:

50 tonnes of Namkeens,
20 tonnes of chips and other fun foods,
5 tonnes of tinned sweets and soan papadi.

Another two plants are under construction to increase the capacity to

fulfill the rising export demands.

Regular laboratory checks to ensure quality standards being met.

Basic Distribution Channel

Company
Factory
Carrying &
Forward Agent
Distributors
Retail Outlets
Consumers

Distribution Channel

At Haldiram, they have defined their distribution network with

respect to the weight and price of their various products.

This is because they have defined their retail outlets in terms of

the kind of product they keep. For e.g., a 10 gm bhujiya packet is
generally opted by the paan walas and very small retailers.
Thus, they have a different distribution channel.

Similarly, a parallel channel of distributor is for the kirana

stores in various colonies and localities where our middle class
housewife visits who prefers the less than kg packets but more
than the small chillar of 10gms. This segment of consumers is
supplied through a different set of distributors who stock the
200gm and 400gm packets.

Contd..

Thirdly, the big modern trade stores like Spencer's, Vishal Mega Mart,
Reliance Fresh, Subhiksha etc., generally prefer keeping the 500 gm and 1
kg packets. They have assigned exclusive distributors for them.

Fourthly, for army canteens, or BSF, CRPF canteens, there is a separate

channel of distribution followed.

Since, the price at which the products are sold to these canteens are very
low, goods are supplied through the exclusive CSD, Company Sales
Depots.

These depots are located near army cants, like one in Delhi near Palam.

The company has various CSD all through out the northern and northeastern India covering as far as Nagaland and Jammu & Kashmir.

Contd..

The C&FA are used for distribution of the product outside Delhi, NCR.

The C&F agents work on Freight paid basis till their warehouse.

If the Warehouse is either on the first floor or the basement, then the labor
charges are born by the agent and not the company.

Within Delhi, the Distributors are located by dissecting the city into four zones
north, east, south, and west Delhi.

They pick the products from the depots and the logistics are managed by
themselves. Though the company does have a say in it but leaves the
responsibility on them as distribution is more about relationships, as per Mr.
Goyal.

Contd..

Profit Margins within the distribution channel is as

following:

4% commission to the C&F (consignee and forwarding) agent,

7% margin to the distributor and
15 to 20% margin to the retailer.

In case of Army Canteens, a fixed price policy is followed

which can be revised once in three years as per govt.
regulations.

The profit margin in these canteens is very negligible due

to the fixed price at which they are supplied.

Selection of a Distributor

The first rule of selecting a distributor is NO CREDIT.

Derived from it, they view the following points of reference

before selecting a distributor:
1.
2.
3.
4.

Financial Strength,
Reputation in the market,
The System followed by the distributor,
Positive Attitude.

Also, the distributor of Haldirams solely sells their products.

They cannot keep any product of any competitor, in short they
are exclusively haldirams distributors .

Beat chart

A beat chart is generally a visit planner that is designed by the

company in collaboration with the distributor.

It is designed to inform the distributor that the company sales

executives will visit the following distributor on the following days as
per the schedule for order taking and other queries.

This helps both the company as well as the distributors to work in an

organized manner as each know when the company will visit and
when to expect the stock delivery.

Similarly, the company officials know which distributor to visit when

and how the goods will be dispatched and in what lot sizes.

Contd..

At Haldiram, they have further divided each zone in Delhi into smaller segments.

The company sales executives meets, for e.g.,

Lajpat nagar and to G.K.1 belt on Monday

South Delhi to G.K.2 belt on Wednesday.

Similarly, within this they meet their various distributors on days assigned and
take their orders that are dispatched the very next day.

There is a separate team of sales executives for the 4 Delhi zones with each
having their respective ASM and RSM.

Similar exercise is followed in other regions involving C&F agents .

Shelf Placement

Shelf placement is an important issue in todays modern trade stores.

Though Haldiram can define the shelf space they would prefer at
these outlets, their policy is to let the retailer decide it.

This is mainly due to the following two reasons:

Firstly, such a demand does not come without a price.

Secondly, it is believed at haldiram that their product has the right

customer pull so in any case the retailers prefer to keep its product at
visible places.

Transit Losses

There can be three to four types of transit losses mainly, these

are:

Loss due to drenched in rain.

Damage of Carton seal.
Unfilled or empty packets.
Incomplete Cartons.

Three major problems are faced in such a situation are:

Product flow,
Document flow,
After Delivery Issues.

Claim Settlement

The procedure for claim settlement is as follows:

The moment the distributor finds damaged products it informs

the company about the quantity of packets damaged, of which
product, and their batch no.

If the distributor checks it before signing the transport slips it

can send them back with the transporter.

In case, he finds them after the transporter has left the goods
in godown, then the company issues a credit note when
informed on phone, which the distributor can cash on the next
visit.

Contd..

Since, the company shares cordial relationship with its distributors

there does not exists a very standardized procedure that is followed.

In case the transporter has left and the damaged goods were found
afterwards the product as well as the document are send in the next
visit of the company.

The document needed in case of transit losses is delivery note

mentioning the details explained above.

But in case of C&F agents, they destroy the product after their
expiry dates have passed without informing the company.

THANK YOU!!