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    Bikano eyes 35% growth in FY22, to foray into southern markets

    Bikano eyes 35% growth in FY22, to foray into southern markets

    Bikano eyes 35% growth in FY22, to foray into southern markets
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    By Shilpa Ranipeta   IST (Published)

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    Over the next three years, the company is aiming to grow its revenue to Rs 2,500 crore.

    Bikano, the packaged snacks brand of Bikanervala, is eyeing a growth of 35 percent in the coming fiscal as it plans to clock revenues of around Rs 1,200 crore in FY22. Over the next three years, the company is aiming to grow its revenue to Rs 2,500 crore.
    The company has lined up an aggressive expansion plan and on Wednesday, launched a six new products under the Bikano brand ahead of the upcoming festive season. With the addition of the new products, the company is expecting a sales surge of up to Rs 75 crore. The brand is already worth over Rs 1,000 crore, the company said.
    While the launch is aimed primarily at consumers in the northern Hindi speaking belt where the company is dominantly present, the company is also set to foray into the southern markets from August 1, while also expanding its presence in the west.
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    The company has set up a new manufacturing unit in Hyderabad with an investment of over Rs 100 crore. The greenfield manufacturing facility is set to become operational from August and will help cater to the south and western markets.
    Currently, Bikano has limited presence in the west through modern trade channels. With the new manufacturing facility, the company plans to launch a whole new range of regional snacks aimed at the southern markets such as banana chips, murukku, among others. Bikano currently has five major facilities across New Delhi, Greater Noida and Rai.
    In addition, Bikano also plans to expand its presence in all segments of snacks including beverages, ice-creams, sweets, etc. It is also planning to expand its ready-to-eat and frozen food categories.
    Speaking at the launch, Manish Agarwal, director, Bikano said the company is also now looking at healthier products, "There is a lot of demand for healthier snacks so health will play a vital part in our future innovations."
    Agarwal said the new products launched by the company also include healthier options such as the 'Lajawaab Mixture’, made with dry fruits, a high protein mixture ‘Dal mixture’ and a ‘dry fruit mixture’.
    However, high commodity costs continue to hurt the company. Bikano said it is seeing a rapid rise in the prices of oil, flour, pulses and nuts, which it uses in making its snacks. However, the company has so far absorbed costs and is also looking at cutting costs to improve efficiency.
    "It is painful to see how costs are increasing. But we have no plans right now of increasing prices. But if things continue the same way, we will be forced to increase prices," Agarwal said.
    Bikano directly competes with Haldirams, Pepsico’s Kurkure and Lay’s, and Prataap snacks on a national level in the branded snacks and namkeen category, along with several regional players.
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