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Incorporated in 1995, one of India's largest fast-moving consumer goods ("FMCG") brands. It is third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and the second fastest growing company in the Indian organised snacks market. Company’s product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range and cookies.

largest manufacturer of Bikaneri bhujia with annual production of 29,380 tonnes, and second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2022. It is also the third largest player in the organised sweets market with annual capacity of 24,000 tonnes for packaged rasgulla, 23,040 tonnes for soan papdi and 12,000 tonnes for gulab jamun.

The company has over the years established market leadership in the core states of Rajasthan, Assam and Bihar with an extensive reach. It has gradually expanded its footprint across India, with operations across 23 states and three union territories as of June 30, 2022..

In the six months ended June 30, 2022, The company has exported the products to 21 international countries, including North America, Europe, the Middle East, Africa, and Asia Pacific.

Bikaji Foods International Limited has six operational manufacturing facilities, four facilities located in Bikaner (Rajasthan), one in Guwahati (Assam), one facility in Tumakuru (Tumkur) (Karnataka).

Over the years, It has developed a large pan-India distribution network. As of June 30, 2022, company had six depots, 38 superstockists, 416 direct and 1,956 indirect distributors that work with superstockists, located across 23 states and four union territories in India.

Outlook & Valuation: Due to shifting lifestyles, rising incomes, and urbanisation, India's packaged food industry has experienced tremendous growth over the past five years. Currently, pan-Indian demand for regional snacks is booming. Bikaji is a popular brand in this segment and is among the top three Indian ethnic snack manufacturers in India with a pan-India presence. The company has a strong management team and a significant percentage of promoter holdings. It generated strong revenue growth in the last 3 years where revenue improved from Rs. 1082.9 crore in FY2020 to Rs. 1621.45 crore in FY2022. However, the company's margins are on the declining side and a P/E valuation of 95.2 looks expensive. Finally, this issue is a complete offer for sale, and thus we recommend a Subscribe rating, but only for high-risk investors.

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