Success Story Of Indian Brand Haldiram's - Domestic To Global Expansion

on Jun 18, 2024 | 3360 views

Written By: Nikita Janiya

Haldiram's, a name synonymous with delectable Indian snacks, has carved a unique niche in the hearts (and stomachs) of millions across the globe. Its journey, however, began modestly in the bustling lanes of Bikaner, Rajasthan, over a century ago. This blog explores the fascinating story of Haldiram's franchise, from its humble beginnings as a local sweet shop to its current status as a global snacking giant, focusing particularly on its intriguing franchise model.

Heritage Based on Tradition: Haldiram's Franchise Early Days

The year is 1919. A young Ganga Bishan Agarwal, affectionately known as Haldiram Ji, sees his father’s bhujia business flourishing in Bikaner. Bikaneri bhujia, a delicacy made with chickpea flour, was already a local favorite.

But young Haldiram has come up with a twist – a thinner and crispier version using worm flour instead of recycling. This simple innovation offered in his father’s shop became an instant hit and laid the foundation of the Haldiram empire.

Building a brand: Extension and family heritage

  • In 1937, Haldirams established it as a store dedicated to sweets and namkeens (sweets). The taste and uniqueness of their signature kite bhujia resonated with Bikaners, attracting loyal customers.
  • After Haldiramji’s death, his sons – Moolchand, Satyanarayan, and Rameshwar Lal – took over the reins. Realizing the brand’s potential, they ventured beyond Bikaner in the 1950s.  This expansion not only increased brand awareness but also diversified their offerings beyond Bhujia.

Haldiram’s Franchise Model: Confectionery

As Haldiram’s popularity grew, they saw the power of franchises to accelerate their growth. Unlike many fast food chains, Haldirams offers three distinct franchises:

  • Kiosks: These compact outlets, which require at least 150-200 sq ft space, are ideal for high-traffic areas like malls, transport hubs, etc. They offer a grab-and-go selection of Haldiram’s most popular snacks.
  • Quick Service Restaurants (QSRs): These mid-sized supermarkets offer take-out restaurants. They typically require 1000-1500 sq ft and offer a wide range of Haldiram products, including hot and cold drinks
  • Regular dining restaurants: These large spaces of 4000-5000 square feet offer a complete dining experience. They cater for families and large groups, offering not only refreshments but a large selection of meals and desserts.
  • This tiered franchise model allows prospective entrepreneurs to choose the strategy that best suits their budget and business capabilities. It also caters to customer preferences, providing convenient on-the-go snack options or a more relaxed sit-down meal.

The secret sauce: have quality, consistency, novelty

  • The unrelenting dedication to quality that Haldiram has never wavered from has been the foundation of their success.. Only the finest ingredients are used and strict quality control procedures are adhered to throughout the production process. This commitment ensures consistent taste and flavor across all of their great products.
  • Innovation has also played an important role in Haldiram’s growth. Staying true to their traditional roots, they are constantly introducing new flavors and techniques to meet changing consumer preferences. From healthy food options to regional specialties.

World Conquest: Haldiram’s Franchise Global Expansion

  • Haldiram’s international tour began in 1993, with the United States becoming their first export destination. Large Indian diaspora in the US offered a ready market for their familiar taste.
  • Recognizing the potential of overseas markets, Haldirams established its first manufacturing facility in the UK in 2016. This strategic move allowed it to cater to the growing demand for Indian snacks in Europe, the Middle East, and other parts of the world
  • Today, Haldiram is available in Singapore, Canada, Australia, and New Zealand, as well as many Asian and European countries. Their products are available in more than seven million retail stores worldwide, cementing their position as a truly global brand.

The Road Ahead: Embracing the Future

Despite Haldiram’s phenomenal success, don’t show signs of slowing down. Here are a few snapshots of how they are embracing the future:

  • Digital transformation: Recognizing the growing impact of online shopping, Haldirams is actively developing its e-commerce presence. This makes it easier for consumers around the world to buy their favourite foods directly from the brand.
  • Focus on sustainability: Haldiram is increasingly aware of its impact on the environment. They are looking for sustainable packaging solutions and appropriate sourcing practices to reduce their environmental footprint.
  • Procurement Strategies: Haldiramus has developed procurement strategies in recent years such as raw lettuce to expand its product range and strengthen its market position
  • Product diversification: While Haldiram has remained entrenched in its core snacking expertise, it is venturing into new categories such as frozen foods, ready-to-eat meals, and foods that cater to the demands of busy consumers meeting the evolving needs of convenient and delicious food options.
  • Franchise model expansion: Haldirams is constantly evolving its franchise model to attract new entrepreneurs and expand its reach in domestic and international markets

Challenges and opportunities

  • It is possible that Haldiram will have both difficulties and possibilities in the future.. It will be important to maintain brand consistency across a large global network. Furthermore, competition from established international food brands and emerging local players requires continuous product and strategic marketing innovation.
  • However, the increasing popularity of Indian food around the world presents a unique opportunity. Renowned for its brand establishment and product diversity, Haldiram is well-positioned to capitalize on this trend. Embracing digitization, sustainability, and strategic expansion, Haldiram is set to continue its incredible journey of appealing to tastes and hearts around the world for generations to come.

The thrill of the Haldiram’s franchise in India: The desire to win-win

While Haldiram's global expansion is an interesting story, its success in the booming Indian franchise industry is equally noteworthy. Let’s delve into Haldiram’s franchise world and examine the compelling opportunities it offers aspiring entrepreneurs.

Based on the data, the increase in the number of foods that are allowed in India

The Indian food and beverage industry is growing exponentially, estimated to reach ₹8.2 billion (US$107.2 billion) by 2025. Franchising for established brands and entrepreneurs in this sector This emerges as a preferred example.

According to a report by Franchise India Brand Connect, the Indian food service market is expected to reach ₹50,000 crores (US$6.5 billion) by 2025.

Why choose Haldiram’s franchise?

  • Being a Haldiram franchise owner offers a host of benefits for aspiring entrepreneurs. Here are some of the main reasons why it stands out:
  • Brand power: Haldiram enjoys high brand recognition and customer loyalty within India. Franchise ownership capitalizes on this established reputation, creating instant credibility and engaging customers from day one.
  • Proven business model: Offers a well-defined franchise model including Haldiram’s detailed business and marketing strategy.
  • Continual support: Haldiram provides its franchisees with continuing support, which includes training, assistance with marketing, and management of the supply chain. This eliminates the need for entrepreneurs to reinvent the wheel, allowing them to focus on day-to-day operations.
  • Choice of Franchise: As mentioned earlier, the tiered franchise model (kiosk, QSR, casual dining) caters to different financial strengths and business priorities This allows entrepreneurs to choose the strategy that best suits their products and objectives.
  • Profitability: A promising investment: While the specific profit margins may vary depending on location, operational efficiency, and franchise strategy chosen, data suggests that food service in India can have significant benefits over the average food service in India and can offer a profit margin of 10% to 20%.

A glimpse into the future: Why the Haldiram’s franchise is a smart bet

Several factors give Haldiram's franchise model a promising future in India:

  • Growth of snack foods: The Indian snack food market is experiencing tremendous growth, driven by factors such as rising disposable income, urbanization, busy lifestyle and more. This trend bodes well for Haldiram's franchise, catering to the growing demand for convenient and also flavorful snacking options.
  • Changing consumer preferences: Indian consumers are more health-conscious and also open to trying new flavors. Haldiram’s continuous production innovation ensures that franchisees can offer a range of products that meet this evolving demand.
  • Strategic Location Selection: Haldiram assists franchisees in selecting strategic locations with high foot traffic as well as good visibility. Therefore, this enhances sales and brand awareness in local communities.

Conclusion

The tale of Haldiram is illustrative of the power that tradition, invention, and expansion both possess.. From humble beginnings in Bikaner to its current status as a global food brand, the brand has come a long way.

Through its successful franchise model, Haldiram has not only built a successful business but has also empowered countless entrepreneurs. While embracing a future focused on digitization, sustainability, and product diversity, one thing is certain – Haldiram’s legacy of deliciousness will surely endure.

Contact us at Franchisebazar to start your restaurant franchises across the country.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.

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