PROJECT SYNOPSIS ON

SUBMITTED TO

Professor Nityanand Jha

(Faculty- Business Environment)
United World School of Law (UWSL),
Karnavati University.

SUBMITTED BY

Name: - Devang Rao

Roll No: - 12
Semester: -3
Section: -B

UnitedWorld School of Law,

Karnavati University.

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 CERTIFICATE OF DECLERATION

I hereby declare that the project work on “Haldiram’s” submitted to UnitedWorld School of
Law, Gandhinagar, is record of an original work done by me under guidance of Professor
Nityanand Jha, Faculty member, UnitedWorld School of Law, Gandhinagar.

Name-Devang Rao

Roll No.- 12

Semester-3

Section-B

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 ACKNOWLEDGEMENTS

This is not just a customary acknowledgement of help that I received but a sincere expression
of gratitude to all those who have helped me to complete this project and made it seem
apparently more readable than otherwise it would have been. I am in debt to my faculty advisor
Professor Nityanad Jha for giving such an interesting and wonderful topic “Haldiram’s” and
who has been extremely kind to make space for all my enthusiasm & endeavours and making
it seem easy by clearly explaining its various aspects.
I am also grateful to all my friends and seniors who have given their valuable suggestions
pertaining to the topic and have been a constant source of help and support.

Thanking everyone.
Devang Rao

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INTRODUCTION:

Haldiram's is a major potato chips and Indian sweets and snacks manufacturer1.based out
of Delhi and Nagpur. The company has manufacturing plants in a wide variety of locations
such as Nagpur, New Delhi, Gurgaon, Rudrapur and Noida2. Haldiram’s has its own
retail chain stores3 and a range of restaurants in Nagpur, Kolkata, Noida and Delhi.

Haldiram's was founded in 1937 by Shri Ganga Bhishen Agarwal as a retail sweets
and namkeen shop in Bikaner, Rajasthan. In order to drive expansion, the company's first
manufacturing plant was started in Calcutta. In 1970, a larger manufacturing plant was
established in Jaipur. Another manufacturing plant was established in New Delhi, the capital
of India, in the early 1990s.In 2003, the company began the process of developing convenience
foods to be marketed to consumers. In 2014, Haldiram's was ranked 55th among India's most
trusted brands according to the Brand Trust Report; a study conducted by Trust Research
Advisory. The company has grown at a tremendous pace over the years and in 2017 it was
crowned as the country’s largest snack company, surpassing all other domestic and
international competitors. In addition to domestic success, the company has found global
success with its products being available in more than 80 countries including Sri
Lanka, Germany, United Kingdom, United States, Canada, United Arab Emirates, Australia.

1
http://www.metro.us/newyork/lifestyle/2013/04/08/philadelphia-students-have-a-taste-of-india/
2
http://news.oneindia.in/2006/07/02/haldirams-to-expand-in-northern-region-1151825578.html
3
Ray (2010). Supply Chain Management for Retailing. Tata McGraw-Hill Education. p. 309. ISBN 0070145040.

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SWOT ANALYSIS OF HALDIRAM’S:

Strengths in the SWOT analysis of Haldiram’s:

This helps in understanding the core areas of the business where it beats the competition and
has the competitive advantage in the market. Strengths are generally the core competency of
the business.

1. Brand awareness and recall – Haldiram, as mentioned above, is present globally as well
and hence it has a high brand awareness as being an Indian brand it has been able to
expand globally and consistently supply its products across borders.

2. Product Line – The product line is extensively deep and wide which gives customers
many options. To name a few products like namkeens, papads, chips, cookies, sweets,
dry fruits, sherbets, etc. are available in the product portfolio of the brand.

3. Trusted for quality and hygiene – Haldiram restaurants have a good infrastructure and
it has maintained the cleanliness and hygiene of its restaurants4

4. Attractive packaging – The brand has a very attractive packaging which helps in
attracting the eyeballs in the retail store. A study conducted proved that even if the
products are not placed at eye level the packaging has helped to attract the customers
and pick the product5.

5. Supply chain – Haldiram has been able to develop a good supply chain network which
helps in ensuring availability of products. Increasing the sales can only be done if the
product is made available at point of sales6.

6. Appropriately priced for the customers – The brand has priced its products
appropriately so that it can be consumed by the middle and upper-income group. It has
different variants of packages priced according to the quantity7.

4
https://www.marketing91.com/swot-analysis-haldirams/
5
Ibid.
6
Ibid.
7
Ibid.

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 7. Taste – The taste of different products are relished by the customers and it has been
able to develop a niche in the market for the kinds of food products it offers to the
customers8.

8. Global Presence – Haldiram has a global presence and hence it helps in building the
brand reputation that the products are exported internationally9.

Weaknesses in the SWOT analysis of Haldiram’s:

This is the pain area of the organization where it does not have the resources or skills. Business
has to work upon these areas so that they are not left behind from the competition. Though
there will be some or the other weakness it should not be an area which takes the business pout
off the market10.

1. Branding and Advertising – Haldiram does not perform much marketing activities. It
has done mainly ATL activities which makes it little aside in comparison to its
competitors.

2. Outlets are confined mainly to north India – Although the brand is present globally
but in India which is the home nation the brand has its stores only in the northern India
and hence the popularity is limited to only one section of the group.

Opportunities in the SWOT analysis of Haldiram’s:

This helps in understanding what other things a business can do with the current skills and
resources. It helps the business to know the areas where it can expand and take a lead in order
to diversify the business and expand the customer base

8
Ibid.
9
Ibid
10
Ibid

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 1. Reaching more people – The brand has the opportunity to further expand in the home
nation where it is loved the most. It will help to increase the customer base and
popularity in other parts of India.

2. Enlarging the hotel business – There is a good opportunity to invest in the hotel
business in global context. Indians are present all over the world and hence it can be
leveraged by the business Growing outlets.

1. Advertising and Branding – Aggressively advertising and promoting the brand

2. Introducing people with healthy, fat-free, low calories snakes that are baked

3. Innovate by introducing snacks catering to the youth.

Threats in the SWOT analysis of Haldiram’s:

This analysis helps in understanding what are the areas which can impact the business in future
or right away. So business has to prepare itself to handle the threats in the market landscape.
Competition or increasing number of players in the market with same value proposition is a
threat to business as it directly lowers the customer base and revenue

1. Increasing Western Taste – Consumers in India are more persuaded with the western
ways and are convinced that Indian snack is unhealthy, dipped in oil which consistently
poses a challenge for the brand to attract the customers
2. Bad Reputation – Indian snacks have a reputation for being unhealthy and hence it
places a bad image on Haldiram’s business as well
3. Increased challenges from other brands

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PESTEL ANALYSIS OF HALDIRAM’S:

Political:

The Indian market has been thrown open for direct foreign investments. A single cell for the
facilitation of foreign investors and various schemes has been launched to attract multi-national
corporations. So, the small scale restaurateurs and local food manufacturers will have to adapt
themselves to technological advancement so as to stay relevant in the field. There are several
initiatives by the food processing and packaging department of central and state governments
that determine the standards and incentives for these enterprises like subsidies , food parks ,
equipment fairs and distribution centres and several related schemes (yojanas) that help
promote or fund these industries. In the 2018 budget, funds have been allotted to establishing
infrastructures such as cold storages and processing units which will help the food industry
prosper11.

Economic:

In terms of market size, the Indian food market was worth $193 billion in 2016 and is expected
to cross $540 billion in 2020, so there is huge scope. Though, the availability of raw materials
to be used as ingredients is varying due to inflationary effects. Healthier alternative foods are
pricier compared to fast food or easy-to-make meals, but are in demand in the upper class
societies of cities, so a niche market has already been created in this segment. There is an
increase in the number of small eateries and snack manufacturers, so as other brands or outlets
throwing up discounts and offers one is forced to keep the price low even if the qualitative
input from his side is good. Also, as the middle class is price sensitive and they form the major
chunk, it is important to price competitively12.

11
Ram Swaminathan"Analysis Of Challenges And Opportunities Prevailing In The Indian Food Industry.”
International Journal of Business and Management Invention (IJBMI) , vol. 07, no. 08, 2018, pp. 59-63.
12
Ibid.

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Social:

There is plenty of scope and opportunity in this aspect as there is rising concern for healthier
and closer to home-made food among youth and parenting population, still around 48 percent
of the Indian youth prefer traditional food when they eat out. Rising purchasing capacity
especially among consumers of big cities has enabled them to taste and try new food centres
and items. So, the market for new innovative cuisines is increasing day by day. Though, there
is agitation and protest by people against the sale of red meat especially beef, so it is better to
avoid venturing into this segment13

Technological

New entrants face obstacles in investing on and opting to advanced preparation and packaging
techniques but the well-established ones find it easier to switch over to new technologies. Some
brands like yellow diamond and goli vadapav have expanded successfully by purchasing new
technology as they Analysis of Challenges And Opportunities Prevailing In The Indian Food
Industry www.ijbmi.org 61 | Page have been able to get investors on board. Also, making
machines is quite difficult as the traditional food preparation process is complex and labour
intensive, difficult to automate14.

Environmental:

Changing government rules and regulations have pressed the brands to adopt a greener
approach; snack manufacturers like cola are trying to give back water more than they draw.
These factors have a cascading impact on cost of raw ingredients. Also, the degrading qualities
of fruits and vegetables due to excessive usage of chemical fertilisers and pesticides on field
and increased customer awareness have paved the way for organic farming. There is growing
craze for organic products but only among a small affluent class is buying it as it is costlier,
the price can come down only if the organic farming is taken up on a large scale15.

13
Ibid.
14
Ibid.
15
Ibid

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Legal:

The usage of preservatives in packaged products has sparked controversies in the past as well;
consumer laws and quality standards for food industry are very important and somewhat
challenging for the owners to keep up with it. Even though, India has gone up in the ease of
doing business list, when it comes to food industry, there are stringent rules and various
government bodies have to provide approval16

ANALYSING PORTER’S 5 FORCES:

1. Competitive Rivalry:

 High Competition
 Branded Players involved in cut-throat competition to increase market share,
entice new consumers, find new market.
 Quality difference between branded and unbranded offerings is offset by low
price offered by unbranded players.
 Brand Loyalty is high for branded players
 Eg:- Balaji Food Ltd., Gopal Namkeens,etc

2. Bargaining power of supplier:

 Suppliers provide raw materials such as gram flour,dry fruits, spices and other
ingredients. Their ability to raise input costs is high.
 Higher cost of input commodities leads to lower margins, making the market
unattractive for distributors and retailers.
 Shortage of any input material may also affect production and thereby impact
distribution.
 Veteran players like Lays and Balaji already have a well-established network of
suppliers.

16
Ibid.

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 3. Threat of new entry:

 Namkeen market- 2000crore As the market is growing at 30 percent annually,

new entrants may consider it a profitable venture.
 As branded players are priced similarly, new players might penetrate by adopting
a lower price or by offering more grams at the same price.
 New players with a distinct USP and marketing strategy may find it easier to enter
the market (Om Nmakeen).
 Unorganized players still account for half of the total segment, thereby
discouraging market entry.
 Veteran players such as Haldiram etc enjoy economies of scale, well-established
distribution and good distributor relations.

4. Bargaining power of consumers:

 Haldiram enjoys a healthy lead with a 45 percent market share for it’s portfolio
of products, Lehar- 40%.
 Ability to substitute is high as brands are priced similarly and distribution
problems for one brand promote sales for the other.
 Price Sensitive, taste conscious consumers are high. An increase in the price of
Haldiram’s may promote a switch to Balaji or lehar for most buyers (except for
loyalists).
 Quality and taste conscious consumers who buy brand.
 High demand during festival season and low during monsoon.

5. Threat of substitutes:

 Indian Snack Segment is high-volume, low-involvement driven (thrives on

impulse buy).
 All snacks are considered to be substitutes of each other Biscuits, Wafers and
local snacks like Chakli, banana chips, farsan etc are all substitutes of one another

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