Haldiram’s is a renowned brand and is considered an integral part of the Indian food industry. This brand, known for its Indian snacks, is loved by many and needs no introduction. But have you ever wondered who is behind this multi-crore company? In this article, we will share everything about the founders, the Agarwal family, and the success story of Haldiram’s.
The beginning of Haldiram’s was a small sweet shop in Bikaner, Rajasthan, India. The aim was to change the way traditional Indian snacks and sweets were perceived by people. Now, it has become one of the prominent brands and a household name in India. Despite several obstacles, the business has grown and has withstood the test of time.
So, how was the journey from a chawl in Bikaner to making it on the 2019 Forbes India Rich List? Let’s find out.
Who is the founder of Haldiram?
When Ganga Bishan Agarwal was just 12 years old, also known as Haldiram Ji, decided to change the taste and ingredients of a product that we now recognize as the famous Haldiram’s bhujia. This bright young boy aimed to create a fine, crispy bhujia, moving away from its previous fatty and somewhat bland version.
His goal was to make the product irresistible to customers. Instead of using besan (chickpea flour), he used moth ki dal (moth flour), an ingredient that was readily available in Rajasthan.
But the young Agarwal didn’t stop there. He also set a price point for the product that elevated it from a simple commodity to an exclusive item. His grandfather Bhikharam used to sell it at 2 paise per kilo, but he set the price at 5 paise a kilo. To add to the brand’s appeal, he renamed it ‘Dungar Sev’, after the then Maharaja Dungar Singh.
Haldiram’s Success Story
The success of the Agarwal business venture was marked by the price of their unique bhujia soaring from 2 paise a kilo to 25 paise in the early 1930s. It was turned into a global business when this bhujia was purchased by merchants for their friends and family back home while on their way to Kolkata. A business in Kolkata was opened in the early 1950s by Ganga Bishan Agarwal and his sons Moolchand and Rameshwar Lal, with the assistance of well-wishers.
Haldiram’s Bhujiawala was later divided into Haldiram’s Prabhuji and Haldiram’s. This quickly became a huge success and the business expanded to other Indian cities.
The Delhi unit is managed by Manoharlal and Madhusudan Agarwal, the Nagpur unit is managed by Shiv Kishan Agarwal, the Bikaner unit is managed by Shiv Ratan Agarwal, and the Kolkata unit is managed by Rameshwarlal’s son, Prabhu Agarwal.
High-quality traditional Indian snacks and sweets were offered, and Haldiram’s gained popularity for its delicious range of snacks like sev, bhujia, and several traditional sweets. The consistent quality and flavors of Haldiram’s products earned the trust and loyalty of customers across India.
Journey of Haildiram in Delhi
An independent business was desired by Moolchand’s youngest sons, Manohar Lal and Madhusudan. The Agarwal family, believing in organic growth was against the idea of debt or taking loans. As a result, all their savings were withdrawn by Manohar Lal and his brother Shiv Kishan while they were setting up their business in Delhi.
In 1983, Haldiram’s began its operations in Chandni Chowk. However, as bhujia was not a unique product in Delhi, tough competition was faced by the brothers from established businesses like Bikanerwala and Ghantewala. A strategy was made by the Agarwal brothers to differentiate themselves by focusing on adjusting flavors and innovating their products to cater to the market’s needs.
Rebuilding their business
A business was established by Manohar Lal that became the foundation for today’s empire. A focus on innovation and automation was maintained by the young owners. They aimed to distribute their products to the most remote corners of the country. In the process of rebuilding their business, their apartment was transformed into a factory overnight. Sleepless nights were spent by the entire family to meet customer demands.
As the business grew, a search for factory space to begin large-scale production was initiated by Manohar Lal. By the late ’80s, the factory was established. The distribution of its products was the major contributor to Haldiram’s success in Delhi. Even today, the ₹5 Haldiram’s bhujia packet is used as currency at railway stations and stalls as a substitute for loose change. This is certainly a testament to their success.
Like many family businesses, the Haldiram’s family experienced inheritance disputes
In the past, Ganga Bishan resolved the family conflict by dividing the business territorially – each family segment could only operate in their assigned territories.
Under this agreement, Rameshwar Lal and his sons were only allowed to do business in West Bengal. At first, this arrangement worked, but as the family branches in other territories started to expand their business, the agreement became less beneficial.
In 1991, a legal dispute arose when the Kolkata family refused to alter their brand name to differentiate themselves from the Delhi brand. This case lasted nearly 15 years, exhausting the family’s resources and straining their emotional bonds.
Finally, in 2013, Delhi’s Haldiram’s became the sole owner of the ‘Haldiram’s Bhujiawala’ trademark.
Halidiram’s Ventures
Manohar Lal and his brother have recently launched a new venture, Brioche Dorée, which is the second-largest bakery chain in the world. For the first time, these bakeries will serve only vegetarian food, specifically tailored to the Indian market.
Kellogg’s, a major breakfast products company, has recently shown interest in acquiring a stake in Haldiram’s (Nagpur and Delhi enterprises), valuing them at $3 billion.
On September 6, 2023, a report by Reuters stated that the Tata Group was in discussions to purchase at least a 51 percent stake in Haldiram’s, valuing it at around $10 billion. However, both companies later officially denied these discussions.
Haldiram’s is expanding globally
They aimed to meet the demand for Indian sweets in Europe by growing their business internationally. A modern factory was established in London. The growth has been impressive, but it has also brought several challenges. In addition to their traditional workforce, the family business is now hiring new professionals. As a global organization, they need to maintain a balance between the two.
The family needs to concentrate on planning for the future to ensure a system that not only works but also allows the business to grow and evolve with each generation.
