Amitji loves Bikaji, and so do we!!!
The market is welcoming a new member, and its none other than our favourite snack company Bikaji. Yes, you read it right, the bhujia king of the country is coming out for an IPO and guess what, just like it stunned us in our childhood with its amazing and flavourful taste, this time the bhujia king is coming strong in the financial markets to raise capital through an IPO. The most loved and lip-smacking snack will be out in the market starting 3rd November. The IPO is subject to close on the 7th of the same month.
Now, let’s cut to the chase, should you subscribe to the Bikaji Foods International Ltd IPO?
Well, we say yes!
Here are ten reasons we think you should invest in the Bikaji Foods International Ltd.
- Bikaji is one of the largest FMCG brands… It is the third-largest ethnic snacks company in India with a wide range of products.
- Opportunity to grow… The traditional snacks market in India is valued at INR 366 billion and the savoury snacks market makes up 46% of it. It has grown significantly in recent years providing Bikaji with an excellent opportunity to grow.
- Market Leadership… The company has market leadership in the states of Rajasthan, Assam and Bihar with 45%, 58% and 29% market shares respectively.
- Reduction in cost… It has recently incurred heavy capital expenditure to help the company efficiently promote its products in its core markets of Assam and Bihar and will reduce logistics and sales costs.
- Power Of Shehenshah… With a well-known celebrity as its brand ambassador, Bikaji Foods has customers to associate with the brand. The company is also intending to roll out special programmes and outdoor promotional campaigns with its “category top-end stores” to increase brand visibility and premiumisation.
- Expansion… The company is determined to expand its reach in the focus markets and has committed investments to establish a solid distribution base by adding more super stockists and distributors.
- Tech-Minded… Bikaji is also leveraging technology to improve its production and distribution process. The company is in the process of digitalizing its super stockists and distributor network with the use of comprehensive distribution management systems and sales force automation.
- Strategy in process… It is also developing a strategy to target specific states by modifying tastes to the needs of the focus state. Also, it has been sanctioned a PLI from the government of approx INR 216 crores which it will receive over the next six years starting FY23.
- Subscribe or Avoid… Looking at the brand recognition of the company in an organized snack segment and its long-term prospects, we recommend a SUBSCRIBE rating for the benefit of listing gains.
And thus, we love Bikaji just like Amit Jii does!!
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