How Did Haldiram Become a Billion Dollar Company? | Haldiram Business Case Study thumbnail

How Did Haldiram Become a Billion Dollar Company? | Haldiram Business Case Study

Whenever we talk about the food companies. International brands like McDonald’s, KFC, and Domino’s are top on the list. But we have an Indian brand. Which is trying to compete with these companies. We are talking about our favorite Haldiram. You’ll get shocked when you come to know. Haldiram started his journey from a small sweet shop. Selling its products in more than 80 countries.

In today’s post, we will come to know. The story behind the success of Haldiram’s. And what are the business strategies? Does Haldiram apply to become a powerful company with a worth of $2Billion? So, let’s start the Story. Haldiram’s company was established, In 1941 by Ganga Bhishen Agarwal that lived in Bikaner. But he started establishing his company in 1919 at an age of 13.

Ganga Bhishen Agarwal belongs to Marwari Family. And everyone used to call him Haldiram. And at his childhood age. He starts working in his father’s shop. At that time, the sale of Bhujai was in demand. That’s why most people used to sell Bhujia in the market. And every seller had the same quality and taste as Bhujia. That’s why the main competition was regarding money. If we talk about Haldiram.

He used to do odd jobs at his father’s shop. But he always tried to learn the methods of making Bhujias. The Bhujia which his father used to sell. Its recipe was made by his daughter-in-law. As when she served the Bhujia to her family members. Then he got an idea. To start selling this Bhujia in the market. And he started selling the Bhujia in the market. And the Bhujia’s delicious.

And his business started growing. But he was the only person in his family. Which was neither satisfied with his business. Nor with the taste of Bhujia. Because he wanted to make special Bhujia. Which will be unique in the market. And to get a monopoly in the market. To achieve this goal. He started doing experiments on Bhujia with different ingredients.

And after trying many ingredients. At last, he got successful in making a product. Which was not available in the market. He made 4 major changes to his father’s recipe. That changed his destiny. The first change he made. He started making Bhujia with moth beans instead of gram flour. It not only changed the taste of Bhujia. It became more crispy.

In short, he introduced a unique Bhujia into the market. The second change he made. As every seller was selling it at a rate of 2 paise/kg. Haldiram set his Bhujia’s price at Rs. 5paise/kg. To make a different standard of his Bhujia. And the third change he made. He set his Bhujia’s name Dongar Sev on Bikaner’s king’s name. But there was no relation between both them. But his name proved as a brand ambassador.

And people start believing this as a premium product. As it became a premium product for people. Then people start buying it at the same rate without any hesitation. Because people start believing that. That they were buying high-quality products Because of all these factors. Haldiram’s Donar Sev get successful sales. And in next few weeks, their sales were getting higher. And Haliram’s Bhujia became the leader in a competitive market.

Then Haldiram established his business. Which is popularly know by its name. But it was just a founding pillar of the company. But after that, the company’s growth second chapter. Started by Shri Krishan Aggarwal at the end of 1960. Which took the company at the level. That no one can imagine. Shri Krishan is the grandson of Haldiram. And he is the 3rd generation of Haldiram.

He joined his family business during the 19s. At that time, the Aggarwal family was divided into 3 subfamilies. Their business was in the cities of Bikaner, Kolkata, and Nagpur. In which, Bikaner and Kolkata’s business was going well. But Shri Krishan had to struggle a lot in Bikaner. At that time, not only the Nagpur. There was no demand of Bhujia in Maharashtra at that time. So, to came to know about the food habit of Maharashtra’s people. So, decided to organize market research.

And he surveyed the whole Nagpur market. After researching for many months. He found 2 big opportunities in the market. The first thing he noticed. Maharashtra’s people were not aware about different snacks. At that time, he had the opportunity. To introduce new snacks in the market. The second opportunity he found it in the sweet market. Where he saw that.

There were only few sweets available in the market, like Balusia, Gujarati Peda, etc. Then he realized the sweet market of Maharashtra. They can introduce some other sweets in the market. And after keeping it in mind. He launched his favorite Kaju Katli sweet in the sweet market. As it was a new sweet for the people of Maharashtra. He start giving free sample of the sweet. Whenever a customer visit his shop. They gave him a kaju Katli for free.

Because of this marketing strategy. Kaju Katli became famous in Nagpur within a few days. And people liked the taste a lot. That took the sales higher. After getting successful sales. He introduced many other Sweets of Bikaner and Kolkata. Because of his business strategies and tasty products. The sales increased by 400% in 3 years. But it was just the beginning.

Then he realized the Nagpur’s people. Like the south Indian snacks like Idli and Dosa. And these snacks were so popular in the market. Only to bring customers to his shop. He started his own south Indian restaurant. And when many people started visiting his restaurant. He started adding Samosa, Kachori, and Chole Bhature to his menu. If we examine it from a business perspective. When he entered in Nagpur’s market.

He was just a strange shopkeeper for people. That was selling strange dishes to people. That’s why people don’t trust him. So, he firstly won trust of Maharashtra’s people by selling the dishes they like. And when he won their trusts. Then he introduced new dishes. Which was unique in Maharashtra. And their sales were getting higher in few next years. There’s nothing to suspect.

His contribution was significant in taking Haldiram higher. But the person that took this business higher. Was Shri Manohar Lal Aggarwal, not Shri Krishan. He adopted two major strategies for the growth of the business. That proved as the game-changer in this story. It was the time of 19s. When no company care about the packaging brand. To make his brand more popular. With the branding of Haldiram.

He started using expensive packaging. So that people feels that they are buying a trusty product. By adopting this strategy. This not only increased brand awareness between them. Even people start trusting more on Haldiram. And his second strategy was, That he start opening big stores in different cities. That increase his sales by thousand within few years. And his business spread out in the whole country.

If we talk about today. Haldiram’s company value has crossed $3 Billion. And this business is spread in more than 80 countries. 3 generations of Aggarwal’s. That converted their small business into a big business empire through hard work. Is shocking. That’s enough for today.

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