In India, the food business is dominated by foreign companies such as McDonald's, KFC, Dominos, and Pizza Hut. These companies have established their presence in every city and have successfully attracted customers. However, there is an Indian company that surpasses these foreign giants in terms of revenue, yet remains relatively unknown to many. HaldiRam, a food and snack business company, started its journey a few years ago in a small cart pit in Rajasthan. Its success did not come overnight, but rather through years of hard work and innovative ideas from the Marvadi community. Let me share with you the story behind their remarkable achievements. In 1920, in a place called Bikaner, Rajasthan, there was a 12-year-old boy named HaldiRam. In Santur, there was a snack shop bustling with activity. However, what is noteworthy here is the variety of food items that gained popularity, such as Guntur Malpuri, Atreyapuram Putarekulu, Kakinada Kaja, and many more. Similarly, in Rajasthan, there was a place called Pikanir, famous for its karapusa. This tradition of famous food items being prepared and sold in villages was prevalent everywhere. HaldiRam's father also owned a shop, and since childhood, HaldiRam closely observed and learned about the intricacies of the business. As he grew older, he realized that merely selling the same bhujia as everyone else would not be beneficial. The taste was already saturated in all the shops.
If any customer approaches him and purchases it, not all the shops there must have something unique in the bhujia that he produces. Recognizing this issue, Haldi Ram stated that the bhujia he produces should surpass all other shops in terms of taste and quality. Therefore, he utilized different raw materials and conducted various experiments. Consequently, they created a high-quality bhujia with a distinct flavor, which they showcased to some individuals. If executed, this will undoubtedly lead to success. Instead of directly introducing the new product into the market, Haldiram employed two strategies: higher prices compared to competitors. Although numerous shops sell bhujia in the market, the taste and quality of all of them are nearly identical. However, the taste and quality of the snack produced by Haldiram are superior. In order to ensure that customers recognize its value, Haldiram priced his high-quality snack at 5 paise per kg of bhujia, while other shops sold it for 2 paise per kg. The advantage of this approach is that if one shop charges a higher price for the same product compared to all other shops in the market, it signifies that something special has been created for the customers. The key point here is that Haldiram offers a superior product compared to others, meeting customer expectations. Therefore, customers will be willing to pay the extra three paise, resulting in their satisfaction. An important lesson to be learned here is that when you have a high-quality product and believe that it will meet customer expectations, pricing it higher will enhance its perceived value.
Steve Jobs, the founder of Apple, implemented a similar pricing strategy that proved to be highly successful. This strategy, known as Unique Branding, was also utilized by Haldirams with their self-made product called Dungarsev. The key here is to understand what the market sellers want to know. Even though there may have been a famous king in the area, it has no connection to the popularity of Haldi Ram's product. However, the association of a famous person's name with the product easily attracts those who are familiar with that king. To better comprehend how this strategy works, let me provide you with a live example. Everyone is familiar with the names Amazon and Tesla, but do you know the reasoning behind these names? These specific names effortlessly connect these companies with their customers. For instance, Amazon, being the second largest river in the world, is a well-known geographical feature studied since childhood and recognized by people in many countries. Therefore, if a company is named after the same river, people will easily remember both the river and the company. Similarly, Tesla, although named after the famous scientist Nikola Tesla, is associated with the production of electric cars. By leveraging the reputation of Tesla as an electrical scientist, the company effectively reaches out to its customers. This is the secret behind the success of these companies. Implementing this strategy, Haldirams gained popularity throughout Rajasthan, while Haldirams Bhujia achieved impressive sales.
Haldi Ram, who traveled to Calcutta for a wedding, took the opportunity to analyze the market conditions there. After careful consideration, he decided to expand his Bhujia business to Calcutta. Although Haldiram's children did not further expand the business, his grandsons, Shiv Kishan Agarwal, also known as Manoharlal Agarwal, took it to new heights. Ganga Bhishma Agarwal, the founder of Haldiram, passed the torch to both of them. Shiv Kishan Aggarwal then expanded the business from Kolkata to Nagpur, Maharashtra. However, he faced the challenge of Nagpur's preference for a limited variety of snacks in the evenings. Simply bringing the famous Buji from Rajasthan and selling it directly in Nagpur may not have been successful. Shiv Kishan Agarwal conducted research to understand the food preferences of the people in Nagpur. He discovered that they had a fondness for sweets and South Indian dishes like idli, dosa, and chepathi. With this knowledge, he started his business in Nagpur, offering South Indian delicacies and homemade sweets. To gain the trust of customers, they provided free samples for them to try. If the customers liked the samples, they would then purchase the products. This strategy proved successful, as it allowed them to establish a loyal customer base. Tirupal, a master of the game, understood that customers in a new place would be hesitant to buy unfamiliar products. To overcome this, they ensured that the quality of their offerings matched the preferences of the customers. Once they gained the trust of the locals, they gradually introduced new sweets and snacks, expanding their business in the company of Haldi Ram.
Sivakishan Agarwal successfully expanded Haldiram's business by introducing a variety of sweets and different food items. However, it was Vekti Manoharlal Agarwal who truly left his mark on the company through his innovative packaging and brand marketing strategies. Initially, the packaging for Haldiram's famous Bujjia was quite ordinary, resulting in a short shelf life and frequent spoilage. This posed a significant loss for the business. To address this issue, Manohar Lal exclusively focused on snack packaging and introduced the use of nitrogen gas instead of regular air. This change significantly extended the food's expiration date from one to two months to an impressive six months. Not only does this packaging method ensure freshness upon opening, but it also adds a premium touch to the product. By revolutionizing the packaging and marketing of their food items, Haldiram's Haldi Round Sweets have become the perfect choice for celebrating festivals and special occasions. Additionally, Haldiram's has made its food items easily accessible to customers in busy areas such as railway stations, commercial complexes, and shopping malls. They have established stalls in both North and South India, and their business has expanded to over 80 countries. With a diverse range of over 400 food products, Haldiram's has become the largest snacks manufacturing company in India. As of 2022, the company's valuation stands at an impressive 24,000 crore rupees.
