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Bikaji Foods International Limited is one of India's largest fast-moving consumer goods ("FMCG") brands. The company's product range includes six principal categories with 300+ products: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range, and cookies.

Key Highlights

• Largest ethnic snacks company in India. Strong leadership in core states delivering 14.7% in core markets.

• Largest manufacturer of Bikaneri bhujia producing 35,588 tonnes annually.

• 2nd largest manufacturer of handmade papad in India.

• Market leader in family pack segment representing 59% of food products sale in FY23.

• Company has 11 operational manufacturing facilities in Bikaner (Rajasthan), Guwahati (Assam), Tumakur held through its subsidiary Petunt Food Processors and one facility in Muzaffarpur (Bihar) held through the other subsidiary Vindhyawasini Sales. In addition, company has entered into various contract-manufacturing agreements. In FY23, company added 3 new plants in Kanpur, Muzzaffarpur and Bikaner (Hanuman).

• It also has strong export network in 25 countries. PAN India distribution with presence in around 9.5 lacs outlets. Company has also increased direct coverage by 13000 outlets in Q1.

Financial Highlights (Q1FY24)

• Bikaji Foods delivered a strong quarter performance with a 32.8% gross margin and a 13.6% EBITDA margin.

• Volume growth was strong at 15.2% while value growth was 15%.

• Revenue for the quarter was Rs. 482 crores, a 15% growth over the previous year.

• EBITDA was Rs. 65.8 crores, a 113% growth over the previous year.

Outlook

Bikaji Foods International Limited reported strong quarter performance and we see a good growth potential in this company going forward. The company is also focusing on increasing their presence in core and focused states while adding 150 people on the ground to support their expansion plans. They have even added manufacturing plants to open new plants in Raipur and for frozen snacks. The company is targeting a yearly EBITDA Margin of 12.5% to 13% and a gross margin of 31% to 32%. With strong marketing initiatives such as co- branding, digital campaigns along with planning of launching new products, company is focusing on maintaining gross margins while remaining competitive in prices.

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