Verma said, “With all crude prices going up, all commodities going up, so margins – we feel that there would be a slip of about 100-150 basis points there. But yes, on the top-line front, certainly yes, we should live up to what we said.”
The company has maintained its guidance for mid-teens topline growth, with volume growth expected at around 10-11%, supported by robust festive demand and strong growth in e-commerce sales, despite margin pressure.
Overall raw material inflation stands at 6 to 7% year-on-year, primarily driven by surging edible oil and crude-linked packaging costs. The company has only been able to pass on 4.5 to 5% of these price increases to consumers, resulting in the projected full-year margin drop.
Demand momentum is accelerating ahead of Diwali, with distributor loading typically beginning 15 to 30 days before the festival. While snacking is already witnessing high-teens growth, the bulk of sweet sales, which have a shorter shelf life, will materialise from October onwards.
This festive push is being amplified by digital channels. E-commerce growth is now measured in “multiples” rather than percentages, with sweets gaining unexpected traction on quick commerce (Qcom) platforms. “Earlier, this category was not as salient on this platform, but even that is also picking up. So Qcom and all channels are doing extremely well,” Verma noted.
However, the export business is navigating significant headwinds. Geopolitical challenges and container shortages have disrupted supply chains, while freight costs have surged to roughly four times higher.
Looking ahead, Bikaji Food is aggressively targeting the Western snacks category. While traditional ethnic snacks remain the company’s core, the broader market size for Western snacks presents a major expansion opportunity.
Verma expects the segment to grow 1.5 times faster than traditional snacks, projecting it will account for 11 to 12% of the company’s overall business within the next two years.
Bikaji Foods International’s current market capitalisation is ₹14,745.81 crore.
For the full interview, watch the accompanying video
