Bikaji Foods International Ltd Management Discussions

P – Projected Source: MOSPI / RBI*

Overview

The current market size of packaged foods in India is USD 129.2 Billion, exhibiting a CAGR of 6.24% during 2026-2034. The packaged food industry in India has continued its steady growth trajectory into FY26, supported by structural shifts in consumption. Growth in FY26 is driven by increasing urbanisation, rising disposable incomes and changing lifestyles, leading to higher demand for convenient food options such as ready-to-eat and ready-to-cook products. Their popularity is driven by ease of consumption and the availability of clear product information, including nutritional values, ingredients and expiry dates.

The Indian packaged food industry is highly fragmented and multilayered, which consists of organised and unorganised players operating across various product lines. While the organised players consist of large FMCG companies and established regional brands whereas the unorganised sector comprises loose/unbranded food manufacturers. The industry is witnessing a gradual shift from unorganised to organised players.

Evolving dietary preferences and increasing health awareness are further shaping the industry landscape. Consumers are gradually shifting towards healthier and better-for-you products, prompting manufacturers to reduce artificial additives and introduce clean-label, organic and functional food offerings. Additionally, Indias diverse culinary landscape continues to drive innovation through region-specific products, enabling companies to cater to varied taste preferences and expand market reach.

The distribution ecosystem has also strengthened significantly in FY26, with widespread presence across traditional retail, modern trade and digital platforms. While offline channels remain dominant, online channels are witnessing rapid adoption due to improved accessibility and convenience. Regulatory oversight by Food Safety and Standards Authority of India (FSSAI) has further enhanced food safety standards and strengthen consumer confidence.

Outlining the Distribution Reach

The Indian packaged food industry is supported by a comprehensive and evolving distribution network including both offline and online channels. A robust distribution network forms the backbone of the packaged food industry.

Outlook

The Indian packaged food market is expected to maintain a healthy growth trajectory, with the industry projected to reach USD 238.8 Billion by 2034, growing at a CAGR of 6.24% during 2026–2034. Growth is expected to be supported by rapid urbanisation, rising disposable incomes, increasing workforce participation and evolving consumer lifestyles that continue to drive demand for convenient food products across categories.

Consumer preferences are also shifting towards healthier and value-added offerings, leading to greater demand for products with cleaner labels, improved nutritional profiles and functional benefits. At the same time, premiumisation trends are creating opportunities across indulgence, snacking and packaged food segments.

The expansion of modern retail, e-commerce and quick-commerce platforms, coupled with deeper penetration into Tier II and Tier III markets, is expected to further strengthen industry growth. Continued product innovation, wider distribution reach and increasing consumer willingness to experiment with new formats are likely to support long-term growth across the packaged food sector.

Digital channels will play a crucial role in FY27 growth. The rapid expansion of e-commerce and quick commerce platforms is improving accessibility and driving higher purchase frequency, especially in urban centres. Additionally, improvements in cold chain logistics and supply chain infrastructure are enhancing product reach and shelf life. On the supply side, increasing investments in food processing, packaging innovation and distribution networks are expected to strengthen market competitiveness. Regulatory oversight by Food Safety and Standards Authority of India (FSSAI) continues to improve quality standards and consumer trust. Government of India has introduced the Production Linked Incentive (PLI) Scheme for Food Processing Industry where one of the key product segments is Ready to Cook/ Ready to Eat (RTC/ RTE) foods. The scheme is being implemented for a period of six years from FY 2021–22 to FY 2026–27 with a total financial outlay of _10,900 Crores.⁵ Overall, the industry outlook for FY27 remains positive, driven by convenience, health trends, digital adoption and continuous innovation.

5PIB: Press Release on PLISFPI: A Major Push for Indias Food Processing Industry

Increased Disposable Income

Rising income levels have enabled consumers to shift from loose/ unbranded to branded packaged food. This shift is not only driven by convenience but is also an indicator of changing consumer lifestyle and preferences. This trend is especially strong among middle-class households.

Growing Health and Hygiene Awareness

Consumers are increasingly prioritizing hygienic and sealed food products due to growing awareness for fitness and healthy lifestyle. The consumers now want nutritional transparency in the food products and also want to know what are the exact ingredients in them. This is driving demand for clean label foods, low sugar, high-protein, low fat food and organic food.

Government Support and Policy Push

The Government of India has played a crucial role in the growth trajectory of the packaged food industry through policy amendments and infrastructure development. The Ministry of Food Processing Industries (MoFPI) has launched initiatives like Production Linked Incentive Scheme for Food Processing Industry (PLISFPI). Moreover, the creation of cold chain infrastructure and mega food parks is improving the accessibility between rural producers and urban markets.

Emerging Technology in Food Processing

Technological advancements are transforming the food processing industry by improving efficiency, quality and innovation. Automation and robotics are enhancing production speed and consistency, while artificial intelligence and data analytics support demand forecasting and quality control. Advanced preservation methods such as vacuum packaging, nitrogen flushing and freeze drying help extend shelf life without affecting taste or nutrition. Additionally, IoT-based systems enable real-time monitoring of storage and transportation, ensuring food safety. Innovations in extrusion technology support new snack formats and healthier options, while sustainable packaging and improved cold chain infrastructure help reduce waste and maintain product freshness.

Expanding Urban Population

With more people migrating from rural to urban areas and the urban population mostly has limited time, there is a sharp increase in the

6IMARC Group: Snacks Market in India, 2026-2034 demand for Ready to Cook/ Ready to Eat (RTC/RTE) packaged food. They prefer food items that are convenient to carry and require little or no time to cook and packaged food perfectly bridge this gap.

Overview

The Indian Snacking market valued at H 50,590.37 Crore in FY25. This growth is driven by the increasing disposable incomes, changing lifestyle trends and rapid urbanisation. The western dietary habits and the rising health awareness among the youthful demography is increasing the demand for unique flavours and creative snacking products.

The Indian snacks industry consists of a broad range of products, including biscuits, fryums, popcorns, chips, traditional namkeen, salted peanuts and ready-to-eat items. While the snacks market was historically dominated by local vendors and unorganised players, organised brands are gaining significant market share due to increasing consumer preference for hygiene, quality and branded products.

Going by the product type, chips dominate the market with a share of 42% in FY25 because of their universal appeal across various age groups. Pouch is the leader in pack type segmentation with a market share of 68% in FY25 due to its convenience for portability and anywhere consumption. By Pack Size: 50-100 gm represents the largest segment with a market share of 45% in 2025.

Outlook

The Indian Snacking market is expected to have a steady growth in FY27 which will be mostly supported by increasing urbanisation, rising disposable income and the evolving consumption patterns. The market generated is projected to reach a revenue of H 1,03,556.03 Crore by 2034, growing at a CAGR of 8.28% from 2026-2034. Also, the consumer demand is expected to pivot towards healthy snacking due to increased health and nutrition awareness among the consumers.

The organised sector is expected to capture more market share from the unbranded local producers as the consumers have their priorities aligned hygiene, quality and consistent tastes that packaged snacking industry has to offer. Regional taste preference and authentic taste will be the primary growth driver for the companies in the Indian Snacking market. Government initiatives also support the food processing infrastructure through cold chain development, mega food parks and production linked incentives.

Ethnic Namkeen and Snacks, Ethnic Bhujia and Western Snacks⁷

The Indian namkeen market is poised for robust growth, driven by changing consumer lifestyles, rising preference for convenient snacking options and increasing demand for branded packaged foods. The market is expected to expand by USD 4,887.6 Million during 2026-2030, registering a CAGR of 10.2%. Growth is being supported by expanding retail penetration, increasing disposable incomes and the growing popularity of regional and ethnic snack varieties across diverse consumer segments.

The industry is undergoing a structural transformation, driven by premiumisation, health-conscious consumption and technological advancements. Manufacturers are increasingly adopting low-oil frying techniques, trans-fat-free formulations and multigrain compositions, catering to evolving consumer preferences. Innovations in processing, such as extruded snack technology, nitrogen-flushed packaging, aseptic processing and cold chain logistics, are improving product quality and shelf life. Additionally, the adoption of recyclable mono-material packaging has enabled leading players to reduce packaging waste by over 30%, aligning with sustainability goals.

The industry continues to benefit from the rapid expansion of organised retail, wider product availability and deeper distribution reach across urban and rural markets. Manufacturers are focusing on product innovation, flavour diversification and premium offerings to address evolving consumer preferences. The increasing adoption of packaged snacks, coupled with improving accessibility through modern trade and digital channels, is expected to support sustained category growth over the coming years.

The medium-term outlook for the sector remains favourable, supported by strong demand fundamentals, growing consumer inclination towards branded products and continued expansion of retail infrastructure. Companies with established brands, extensive distribution capabilities and a diversified product portfolio are expected to be well positioned to capture growth opportunities and strengthen their market presence in an increasingly organised and competitive industry landscape.

Sweets Market⁸

The Indian packaged sweets industry is an integral part of the broader traditional foods segment, driven by strong cultural relevance and high consumption during festivals, celebrations and gifting occasions. The India packaged sweets market was valued at H 8,431 Crore in 2025 and is projected to reach H 30,505.74 Crore by 2034, growing at a CAGR of 15.36% from 2026–2034. The industry is witnessing a gradual shift from unorganised mithai shops to branded and packaged offerings, supported by increasing consumer preference for hygiene, quality, convenience and longer shelf life.

Growth in FY26 is being driven by rising urbanisation, increasing disposable incomes and expanding retail penetration, particularly in Tier II and Tier III cities. The growing presence of modern trade and e-commerce platforms is improving accessibility, while demand for premium, gift-oriented and region-specific sweets is increasing. Additionally, product innovation such as low-sugar, sugar-free and healthier variants is gaining traction among health-conscious consumers.

However, the industry continues to face competition from the unorganised sector, which still dominates a significant share of the market. To address this, organised players are focusing on brand building, attractive packaging, product standardisation and supply chain enhancements to improve product quality and shelf life. Continued investments in distribution expansion, premiumisation and innovation are expected to support sustained growth and further strengthen the organised packaged sweets segment over the medium term.

Papad Market

The Indian papad industry is a traditional yet evolving segment within the packaged foods market which is driven by strong household presence and cultural value. The Indian papad market is a mix of organised players and a large unorganised base, with an increasing shift toward branded and packaged products due to rising hygiene awareness and demand for consistent quality.

Growth in FY26 is driven by increasing urbanisation, rising disposable incomes and the growing preference for convenient, ready-to-cook food items. The expansion of modern trade and e-commerce platforms is improving product accessibility, while export demand for Indian ethnic foods continues to provide additional growth opportunities. Product innovation, including flavoured variants, multigrain papads and healthier options such as low-salt and roasted formats, is further enhancing consumer appeal.

However, the industry faces challenges such as raw material price volatility, particularly in pulses, and intense price competition from unorganised players. To sustain growth, companies are focusing on branding, product differentiation and strengthening distribution networks.

Major Split of the Industry by Region⁹

West and Central India represent a significant share of the packaged food market, supported by higher urbanisation levels, strong purchasing power, well-developed retail infrastructure, and the presence of major food processing hubs. States such as Maharashtra and Gujarat continue to drive consumption through widespread adoption of branded and convenience-oriented food products. The region benefits from extensive supermarket penetration, efficient logistics networks, and increasing demand for packaged snacks, sweets, and ready-to-eat offerings across both metropolitan and emerging urban centres.

South India has emerged as one of the fastest-growing regional markets, driven by rising disposable incomes, rapid urban expansion, and evolving consumer lifestyles. Growing preference for convenience foods, increasing participation of working professionals, and the expansion of modern retail and quick-commerce platforms are supporting market growth across the region. North India also remains a key consumption market owing to its large population base and strong demand during festive and social occasions, while East India is witnessing gradual growth supported by improving retail penetration, increasing brand awareness, and rising adoption of packaged food products in tier-II and tier-III cities.

Company Overview

Bikaji Foods International Limited has established itself as one of the leading players specializing in ethnic snacks and traditional sweets. It has rapidly scaled within the organised snacks industry and is supported by strong brand equity and an expanding presence in global markets. The Companys portfolio spans across a wide range of offerings, including bhujia, namkeen, packaged sweets, papad, western snacks and frozen products, addressing diverse consumption occasions and evolving consumer preferences. Its flagship Bikaneri Bhujia, a product with a recognized Geographical Indication (GI) tag, remains central to the Companys brand identity, while its presence in sweets and papad further strengthens its category leadership.

Bikaji has established a strong foothold in northern and eastern India and is progressively expanding into other regions to strengthen its pan-India presence. The Company focuses on maintaining consistent quality, authentic taste, and efficient packaging solutions to enhance product appeal and shelf life.

It continues to strengthen its brand through targeted marketing initiatives and wider reach across modern trade, e-commerce, and institutional channels. Alongside its domestic growth, Bikaji is also expanding its international footprint by exporting to key global markets to tap into rising demand for Indian packaged foods.

Future-Readiness and Market Expansion at Bikaji

Bikaji continues to invest significantly in future-readiness through capacity expansion, product innovation, and geographic diversification. The Company has built a robust manufacturing base with an installed capacity 3,25,320 Metric Tons which is supported by strategically located manufacturing facilities across Bikaner, Tumkur, Kamrup, Muzaffarpur, etc. These facilities enable efficient servicing of regional demand while optimizing logistics and ensuring scalability.

The Company has also focused on strengthening its product portfolio by expanding into western snacks, packaged sweets, and papad categories, thereby reducing dependence on a single product category and positioning itself for long-term sustainable growth.

The Company has also introduced a new and refreshed Bikaji logo as a part of the brands next growth phase. The new logo symbolizes trust, legacy and pride - the values that have shaped the brand since its inception. Bikaji is also focusing on premiumisation of its products and market expansion through a shift in product mix, with family packs contributing over 61.4% of total sales. In addition, Bikaji is expanding into new business segments such as retail through exclusive brand outlets and caf?-style formats, which are witnessing strong traction. The Company is further strengthening its export presence and increasing its focus on non-core and international markets, with the objective of becoming a global ethnic snacks brand.

Distribution Expansion and Market Penetration

Bikaji has continued to strengthen its distribution network. The Company has added more than 40,000 direct outlets in FY26, taking the total direct coverage to 3.54 Lakh outlets which has significantly improved accessibility across urban and semi-urban markets.

To enhance last-mile visibility and strengthen local connect, the Company has undertaken extensive on-ground activation initiatives, including deployment of 25,000+ POP/POSM kits in vernacular languages, installation of 900+ branded arch gates, and distribution of 2,000+ branded T-shirts for hawkers and sales teams. Backed by the high-decibel "Bhujia Ho To Bikaji" and "Kya Baat Hai Ji!" marketing campaigns, the Company strengthened its category leadership, significantly improved market visibility, retailer engagement and brand recall in key markets.

Additionally, Bikaji continues to leverage an omni-channel strategy, with modern trade and e-commerce contributing approximately 12.7% of total sales, while online revenues have grown by 73.7% YoY, highlighting strong digital traction and consumer engagement.

Optimizing the Core: Scaling Operations for Value-Centric Growth

Bikaji has demonstrated strong improvement in operational efficiency through focused cost optimisation initiatives and favourable input cost trends. The Company has benefited from softening edible oil prices and stable raw material costs, which, along with premiumisation, has led to significant margin expansion. Gross margins improved to 35.1%, expanding by 290 basis points for the full year.

On the growth front, the Company continues to deliver 9.5% underlying volume growth, supported by strong demand and improved realisations. The increasing contribution from premium products, particularly family packs, has driven margin accretion. Additionally, operating leverage from higher capacity utilisation, along with contributions from newer segments such as retail are supporting profitability. Bikaji remains focused on improving return ratios through disciplined cost management, supply chain efficiencies, and sustained revenue growth.

Ensuring top-notch quality

Quality remains a key pillar of Bikajis operations, supported by its large-scale manufacturing infrastructure and standardized production processes. With an installed capacity 3,25,320 Metric Tons, the Company operates modern facilities with dedicated production lines across categories, ensuring consistency in taste, texture, and quality. Its ability to maintain uniform quality across a distribution network spanning overall reach 14 Lakh outlets, highlights the strength of its quality control systems and operational processes.

The Company also places strong emphasis on raw material sourcing and monitoring, particularly for key inputs such as gram flour, and spices. Despite fluctuations in input prices, Bikaji ensures consistent product quality through stringent procurement controls and continuous process improvements. Compliance with food safety standards, including regulations prescribed by the Food Safety and Standards Authority of India (FSSAI), and clear product labelling practices, further improves consumer trust. This consistent focus on quality supports repeat consumption and strengthens the Companys positioning as a trusted and premium ethnic snacks brand.

Customer Support

Bikaji takes a complete approach to engaging with stakeholders by combining customer-focused practices with strong employee support. The Company maintains high standards for product quality, hygiene, and safety across its operations. Products are packaged in clean, contamination-free environments and meet regulatory standards, which helps build transparency and consumer trust. Strategic marketing efforts include large campaigns and local branding initiatives. These efforts have improved customer engagement and brand awareness.

Human Resources

The Company recognizes its employees as a key driver of its long-term growth and continues to showcase a safe, inclusive and performance-oriented work environment. It remains committed to upholding high standards of ethics, workplace safety, equal opportunity and fair employment practices while adhering to globally recognized human rights principles. The Company invests in employee training, leadership development and skill enhancement initiatives to strengthen capabilities across the organisation and to improve productivity. A robust grievance redressal mechanism, along with a strong focus on employee well-being and engagement, supports a positive workplace culture and contributes to sustainable value creation.

Number of employees as on March 31, 2026

Accounting Treatment

The Audited Standalone and Consolidated Financial Statements of the Company, prepared in accordance with Section 133 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 and the Indian Accounting Standards (Ind AS), along with the Auditors Report, form an integral part of this Annual Report.

Company Outlook

Bikaji remains well positioned to benefit from the growing demand for branded snacks, supported by its strong product portfolio, expanding distribution network and established brand presence. The Company continues to strengthen its reach across core and focus markets while enhancing consumer engagement through targeted marketing initiatives. Growth in family packs, exports, e-commerce and quick-commerce channels is expected to further broaden its market presence. These initiatives are expected to support sustained volume-led growth and strengthen competitive positioning.

Looking ahead, the Company will continue to focus on capacity expansion, operational excellence and supply chain optimisation to support future growth. Increased penetration in focus markets, supported by deeper distribution and demand generation efforts, is expected to drive business expansion. The Company also sees significant opportunities in exports, modern trade and emerging retail channels. Backed by a disciplined execution approach, Bikaji remains focused on delivering profitable and sustainable long-term growth.

Internal Control Systems and their Adequacy

The Company has a dedicated and skilled team that regularly reviews various aspects of its operations throughout the year. These reviews cover areas like overall Company controls, specific operational processes and Information Technology (IT) systems. The team also evaluates key business functions and looks into potential risks to make sure everything is running smoothly and compliantly.

To further strengthen this, the Company engages an independent firm of Chartered Accountants, apart from the internal auditor; these audits are done at regular intervals and follow proper auditing standards. The aim is to check how well the internal systems are designed and whether they are effective in managing risks, supporting day-to-day operations, safeguarding assets and ensuring all rules and guidelines are being followed. After each audit, a report is prepared with key findings and recommendations and these are reported to the Audit Committee, along with the managements response and Corrective Action Plans (CAPs).

The Companys internal controls are built on strong policies and clear procedures for all major activities. There is a clear structure for decision-making, well-planned business strategies, regular audits and timely reviews of the audit plans.

To ensure high standards of governance, the Company has constituted several internal committees. These committees help oversee how well the internal control systems are working and make sure everything stays efficient and effective. Details about these committees are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

Cautionary Statement

The Management Discussion and Analysis Report contain statements regarding the Companys objectives, projections, estimates, expectations or predictions, which may be considered as ‘forward-looking statements according to the applicable laws and regulations. These statements are based on certain assumptions and expectations of future events, and actual results may differ significantly from those expressed or implied in these statements. The Company undertakes no obligation to publicly update, amend, modify, or revise any forward-looking statements, whether due to subsequent developments, new information, events or any other reason.