How a Poor Marwari Boy Built Haldiram's

Summary

The video script narrates the inspiring journey of Haldiram's, India's leading snack brand, from humble beginnings in 1919 to a global empire. Starting with a young boy selling bhujia for two paisa, the brand innovated with unique recipes and packaging, expanding across India and overseas. The story showcases Haldiram's resilience, strategic branding, and commitment to quality, which led to a diverse product range and widespread recognition, achieving a business turnover of over 9,000 crore.

Takeaways

• 📚 Haldiram's began in 1919 when a 12-year-old boy in Bikaner started selling bhujia, which would later become the foundation of a snacking empire.
• 👦 Haldiram was born in 1908 into a poor family and developed a keen interest in bhujia from a young age, leading him to master the craft by the age of 12.
• 🔍 Haldiram innovated his bhujia by mixing moth dal with gram flour, which was a hit among the people of Rajasthan and significantly expanded his business.
• 🍴 He further enhanced the bhujia by making it thin and crispy, which improved the eating experience and led to exponential sales growth.
• 🏷 Haldiram was a branding genius, naming his bhujia 'Dungar Sev' after a popular king, which differentiated his product and commanded a premium price.
• 👨‍👦‍👦 Haldiram's business was established with his two brothers, but personal issues led to a split, forcing Haldiram to start over with his family.
• 💡 With 100 rupees from a friend, Haldiram rented a house and started a moong dal business, which eventually led to the reintroduction of his bhujia.
• 📈 After regaining his status as a local bhujia king, Haldiram expanded to Kolkata, where his products were well received and led to significant growth.
• 🌏 The decision to open a branch in Nagpur was pivotal, as it introduced Haldiram's to sweets and expanded the brand's offerings beyond snacks.
• 🍽 The transformation of Haldiram's from a shop to a restaurant in Nagpur, offering South Indian dishes, was a strategic move to attract customers and diversify the menu.
• 📦 The introduction of nitrogen packaging extended the shelf life of Haldiram's products, allowing them to reach a national audience and become a household name.
• 🚀 Haldiram's diversified product range and strategic distribution through numerous distributors and retailers have made it one of the most popular Indian snack brands globally.

Q & A

In what year did Haldiram start selling bhujia at the age of twelve?

Haldiram started selling bhujia in the year 1919.

What was the initial selling price of Haldiram's bhujia?

The initial selling price of Haldiram's bhujia was just two paisa.

What was the unique ingredient Haldiram added to his bhujia to make it more appealing to the people of Rajasthan?

Haldiram added moth dal to his bhujia, as it was a popular ingredient in Rajasthan.

How did Haldiram innovate the texture of his bhujia to enhance the customer's eating experience?

Haldiram made his bhujia thin and crispy by making the batter thin and using a mesh with smaller holes than a standard one.

What branding strategy did Haldiram use to differentiate his bhujia from others in the market?

Haldiram named his bhujia 'Dungar Sev' after Maharaja Dungar Singh, a popular king of Bikaner, to give it a premium positioning and stand out from other bhujias.

What significant event in 1944 led to Haldiram having to start his business anew?

In 1944, deteriorating relations between the women of Haldiram's household forced him to leave home and part ways with the family business.

How did Haldiram's childhood friend help him during his time of need after leaving the family business?

Haldiram's childhood friend returned a part of the 200 rupees Haldiram had once lent him, which helped Haldiram to rent a small house and start thinking of new business ideas.

What product did Haldiram decide to sell after starting over with the 100 rupees he received from his friend?

Haldiram decided to sell moong dal, a dish his wife Champa Devi made well and was a staple for the people of Bikaner.

What was the turning point for Haldiram's business in the 1950s that led to expansion outside of Bikaner?

The turning point was when Haldiram attended a wedding in Kolkata and received bulk orders for his bhujia, realizing the potential for business expansion in a city with little competition.

How did Haldiram's expansion strategy in Nagpur differ from the original bhujia business?

In Nagpur, Haldiram's expansion strategy included selling sweets like kaju katli and later transforming the business into a restaurant offering South Indian dishes and Bikaner's popular snacks.

What packaging innovation did Haldiram's adopt to increase the shelf life of their snacks and expand their reach across India?

Haldiram's adopted nitrogen packaging for their products, which increased the shelf life from a few days to a few months, allowing them to be sold across India.

How did Haldiram's diversify their product range to cater to different consumer preferences and purchasing power?

Haldiram's diversified their product range by offering more than 400 packaged food items, including sweets, snacks, and pickles, in different pack sizes ranging from 5 rupees to over 200 rupees.

Outlines

00:00

🚀 Founding Haldiram's Bhujia Empire

The script narrates the humble beginnings of Haldiram's, India's leading snack brand, in 1919 Bikaner. A twelve-year-old boy, inspired by his grandfather's small bhujia business, starts selling bhujia for two paisa. Unbeknownst to him, this endeavor would lay the groundwork for a future empire. Born in 1908 into a poor family, Haldiram's early interest in bhujia led him to master the craft by the age of 12. He innovated by mixing moth dal with gram flour, creating a hit product. Further, he revolutionized the bhujia by making it thin and crispy, which significantly boosted sales. Recognizing the importance of branding, Haldiram named his bhujia 'Dungar Sev' after the popular Maharaja Dungar Singh, differentiating his product and securing a premium market position.

05:01

🌏 Expansion and Innovation of Haldiram's

The script describes Haldiram's journey from a local favorite to a national brand. After attending a wedding in Kolkata and receiving overwhelming praise for his bhujia, Haldiram saw an opportunity for expansion. In 1955, he sent his son and grandson to establish a business in Kolkata, which grew rapidly through word-of-mouth and innovative products like the 'Bengali Mixture'. By 1968, Haldiram's business was thriving in multiple locations, managed by different family members. The introduction of sweets to the product line in Nagpur, starting with kaju katli, marked a significant shift towards becoming a major player in the Indian sweet industry. The innovative move to offer free samples overcame initial hesitation and led to a surge in demand. This period also saw the transformation of Haldiram's from a shop to a restaurant, catering to local tastes while introducing Bikaner's popular snacks to a wider audience.

10:01

🔄 Resilience and Global Reach of Haldiram's

The final paragraph details Haldiram's resilience in the face of adversity and its strategic expansion to become a global brand. After a family dispute forced Haldiram out of his own business, he started anew with a small loan and the support of his family's culinary skills. His grandson Shivkishan's vision led to the opening of a restaurant in Nagpur, which eventually expanded to Delhi and beyond. The tragic anti-Sikh riots of 1984 in Delhi temporarily halted business, but Haldiram's grandson Manohar Lal rebuilt and expanded the operation. Recognizing a gap in the market for packaged Indian snacks, Haldiram's introduced nitrogen packaging, significantly increasing the shelf life of their products. This innovation, along with diversification into a wide range of packaged food items and strategic distribution, enabled Haldiram's to become a household name across India and gain popularity in over 80 countries. The story of Haldiram's is a testament to the power of customer delight, innovation, and adaptability in building a successful business from modest beginnings.

Keywords

💡Bikaner

Bikaner is a city in the northwestern state of Rajasthan, India, known for its rich cultural heritage and traditional cuisine. In the video, Bikaner is significant as the birthplace of Haldiram, the founder of the snacking brand, and the place where he first started selling bhujia, a traditional snack. The city's cultural and culinary influence is foundational to the brand's origins and identity.

💡Bhujia

Bhujia is a popular snack in India, typically made from gram flour and various spices, then deep-fried to achieve a crispy texture. The video's narrative revolves around the innovation and commercial success of Haldiram's bhujia, which started as a small-scale endeavor and grew into a cornerstone of the brand's empire. The evolution of Haldiram's bhujia, from a simple snack to a nationally recognized product, exemplifies the brand's commitment to quality and innovation.

💡Innovation

Innovation in the context of the video refers to the process of introducing new ideas, methods, or products to improve or enhance an existing business model. Haldiram's innovation is highlighted through his development of a thin and crispy bhujia, the creation of a unique batter, and the introduction of new products like the 'Bengali mixture' to cater to regional tastes. These innovations were key to the brand's expansion and diversification.

💡Branding

Branding is the process of creating a unique name, symbol, or design that identifies and differentiates a product from others in the market. In the video, Haldiram's branding genius is evident in his strategy to name his bhujia 'Dungar Sev' after a popular king, which not only distinguished his product but also added a premium perception. This branding strategy played a crucial role in establishing Haldiram's products as a premium choice in the market.

💡Expansion

Expansion in this video refers to the growth and broadening of Haldiram's business beyond its initial scope. The script describes the geographical expansion to Kolkata and later to Nagpur and Delhi, as well as the product expansion into sweets and packaged foods. Each expansion was strategic, targeting new markets and consumer preferences, and contributed to the brand's nationwide and eventually international presence.

💡Nitrogen Packaging

Nitrogen packaging is a preservation technique that involves filling the packaging with nitrogen to displace oxygen, thereby extending the shelf life of the product. In the video, Haldiram's adoption of nitrogen packaging for their snacks was a game-changing innovation, allowing their products to be sold across India with a significantly longer shelf life, thus broadening their market reach.

💡Diversification

Diversification in business means expanding into different product lines or markets to reduce risk and increase revenue. The video illustrates Haldiram's diversification strategy through the introduction of various sweets, snacks, and packaged foods. This strategy allowed the brand to cater to a wider range of consumer tastes and preferences, enhancing its market competitiveness.

💡Market Demand

Market demand refers to the quantity of a product or service that consumers are willing and able to buy at a given price. The video emphasizes the importance of understanding and responding to market demand, as seen in Haldiram's decision to introduce products like the 'Bengali mixture' and 'dosa and idli' based on regional preferences, which helped to drive sales and customer loyalty.

💡Entrepreneurship

Entrepreneurship is the process of designing, launching, and running a new business, which typically involves risk-taking and innovation. Haldiram's story is a quintessential example of entrepreneurship, showcasing his journey from selling bhujia at a young age to building a business empire. His entrepreneurial spirit is evident in his ability to identify opportunities, innovate, and persevere through challenges.

💡Customer Loyalty

Customer loyalty is the faithfulness or commitment of customers to repeatedly purchase from a particular business or brand. In the video, Haldiram's focus on quality and taste helped to develop a loyal customer base, which was crucial for the brand's success. The script mentions how the introduction of new products and maintaining high standards of quality helped to retain and attract customers.

💡Liberalization

Liberalization in an economic context refers to the relaxation of government controls on economic activities, allowing for greater market freedom and foreign investment. The video mentions the impact of liberalization in India, which opened up the market for global brands and also presented Haldiram's with an opportunity to expand their packaged food segment and compete with international companies.

Highlights

In 1919, a twelve-year-old boy in Bikaner began selling bhujia, unknowingly laying the foundation for a future business empire.

Haldiram, born in 1908, showed early interest in bhujia and mastered the making process at the age of 12.

Haldiram innovated by mixing moth dal with gram flour to create a new bhujia variety that became popular.

He improved the bhujia by making it thin and crispy, enhancing the customer's eating experience.

Haldiram collaborated with mesh makers to create a perfect thin bhujia through experimentation.

Haldiram was a branding genius, using the name of Maharaja Dungar Singh to distinguish his bhujia.

The Dungar Sev branding led to premium positioning and increased sales for Haldiram's bhujia.

Haldiram faced a personal crisis in 1944, which forced him to leave his home and start anew.

With 100 rupees, Haldiram started over by renting a house and considering new business ideas.

Haldiram's wife, Champa Devi, made delicious moong dal, which became their new business venture.

Haldiram's bhujia and moong dal gained popularity, leading to the opening of a small shop.

Haldiram's business expanded to Kolkata, where his products received bulk orders and praise.

In Kolkata, Haldiram introduced the Bengali mixture, a snack tailored to local tastes, which became successful.

Haldiram's grandson, Shivkishan, opened a branch in Nagpur, introducing sweets like kaju katli to the local market.

Shivkishan's strategy of offering free samples led to the skyrocketing demand for kaju katli.

Haldiram's transitioned from a shop to a restaurant in Nagpur, offering South Indian dishes to attract customers.

The Nagpur branch's success led to multiple outlets and the expansion of Haldiram's product range.

Haldiram's adopted nitrogen packaging to extend the shelf life of their snacks, making them accessible nationwide.

Haldiram's diversified into over 400 packaged food items, catering to various consumer preferences and budgets.

The brand's attractive packaging and widespread distribution made Haldiram's snacks a household name in India.

Haldiram's is now a global brand, popular in over 80 countries, with a business turnover exceeding 9,000 crore.

The story of Haldiram's demonstrates the potential for building a large business through customer delight and innovation.

Transcripts

Year 1919.

On the streets of Bikaner,

a twelve-year-old boy

learns to make bhujia from his aunt

and starts selling it for just two paisa.

Completely unaware of the fact

that one day this bhujia

would become the foundation

of a business empire worth thousands of crores

and one day his name Haldiram would be printed

on millions of bhujia packets sold all over the world.

This is the story of India's biggest snacking brand, Haldiram's.

Haldiram was born in 1908

in a poor family in Bikaner.

His grandfather used to sell bhujia in his small shop in the bhujia market

and since childhood, Haldiram had a lot of interest in bhujia,

that is why at the age of just 12,

he worked hard for hours every day

and mastered the bhujia making process

and very soon started sitting in his grandfather's shop regularly

but like his grandfather,

he was not satisfied with just earning some extra money from bhujia.

He wanted to expand his business.

The bhujia that Haldiram was selling

was made from gram flour

but he noticed that the people of Rajasthan

liked moth dal very much.

People there used moth dal in many dishes.

That's why Haldiram also started making his bhujia

by mixing moth dal with gram flour.

People found his new bhujia quite delicious

and became an instant hit

but he did not stop here.

He realized that his current bhujia

was quite thick and soft

but if he could make it thin and crispy

then the eating experience of the customers

would become quite satisfying.

To achieve this,

he had to first make his batter thin

and also needed a mesh whose holes

were smaller than a standard mesh

for it to produce a thin bhujia.

He collaborated with many mesh makers in the market

to make a perfect mesh

and also tried many iterations of his batter.

Finally, after several months of experimentation,

he made a perfectly thin and crispy bhujia.

This new bhujia increased sales exponentially

but Haldiram's innovation

was not limited to the recipe of bhujia only.

Turns out that Haldiram was secretly a branding genius too.

There were many other shops in the market which sold bhujia

but Haldiram wanted that the importance of his bhujia in the minds of customers

should be many times than that of a normal bhujia.

Haldiram knew that Maharaja Dungar Singh

was the most popular king of Bikaner

and people respected him a lot,

that is why Haldiram named his bhujia

after Maharaja Dungar Singh, Dungar Sev.

Labelled with the Maharaja's name,

his bhujia stood out from all the other normal bhujias

and also got a premium positioning.

With this new branding, he also increased the prices

and customers happily accepted that price.

In the next few years, Haldiram, along with his two brothers,

had established the business well.

And now at the age of 36,

he also had a wife and three sons.

Rising from extreme poverty

everything was going very well for Haldiram,

when in 1944 a big twist came in his life.

Relations between the women of the house started deteriorating.

The situation got so bad that Haldiram finally

had to leave home and part ways.

But the problem was that along with the house,

Haldiram was also taken out of the business.

The business which Haldiram had built with all his heart,

today the same business didn't even pay him a penny

and overnight he was on the road with his family.

But due to his responsibilities he had no time to be emotional.

Haldiram quickly pulled himself together

and started looking for work.

One day while looking for work in the market,

someone called his name.

When Haldiram looked back,

one of his childhood friends was standing behind him.

This friend of his had returned to Bikaner after many years

and Haldiram told him everything about his situation.

Years ago, Haldiram had helped his friend by giving him 200 rupees

and fortunately he had not forgotten this favor.

He returned 100 rupees to Haldiram the same day

and these 100 rupees proved to be a lifeline for Haldiram.

First of all, he took a small house on rent for his family

and then started thinking of business ideas.

His wife, Champa Devi used to make delicious moong dal

and moong dal was a staple dish for the people of Bikaner too.

Then what? He decided to do business of moong dal.

With the remaining money,

he bought moong dal, spices and other items

and also set up a makeshift kitchen.

Both would wake up early in the morning and prepare moong dal

and then Haldiram roamed around the market the whole day

and started selling this dish to local workers and office goers.

Within a short time, he started selling his original passion

that is bhujia along with Moong Dal.

Due to his hard work, taste and quality,

he developed a loyal customer base

and within a short time,

he gathered money to rent a small shop.

Within a short time of opening the shop, word spread in the market

that Haldiram and his Dungar Sev were back.

People started lining up in his shop

and within no time Haldiram again

became the local bhujia king.

In the next few years,

Haldiram focused only on growing this shop,

but then something happened in the 1950s

which proved to be a big turning point for him.

Haldiram had gone to Kolkata for the wedding of his friend's daughter.

There he had prepared bhujiya for all the guests

and when he saw the reaction of the guests after eating bhujiya,

he was quite surprised.

Those people liked bhujia so much

that they were not only praising it

but were also giving bulk orders to Haldiram.

Haldiram had understood

that expanding his business in Kolkata

was a huge opportunity especially because

there was no big competition there who sold bhujia.

In 1955, Haldiram sent his younger son Rameshwar Lal

and his eldest grandson Shivkishan

to set up business in Kolkata.

Here too he started with a small house

and a shop of only 8 square feet.

The beginning was slow but eventually

even in Kolkata his business

started growing due to word of mouth

and within no time he started selling 150 to 200 kilos of bhujiya a day.

Also, to attract Bengalis, according to their taste,

he launched a salty snack named Bengali mixture,

which became quite successful.

In the next 12 years,

his shop grew from 8 square feet

to 25 square feet

and the business was also doubling every year.

Being a big city,

the business of Kolkata branch

had now become bigger than that of Bikaner branch.

By 1968, all three sons of Haldiram were settled,

his elder son, Moolchand

was handling the business of Bikaner,

Sati Das had separated from the family

and opened independent shops

and Rameshwar Lal

was running the Kolkata business.

In view of this, Haldiram took semi-retirement from the business

and he used to visit only occasionally to supervise the business.

Business was already going well

but what happened after this

was going to prove to be a golden chapter in Haldiram's business journey.

Haldiram's eldest grandson, Shivkishan,

who was till now working with his uncle in Kolkata business,

decided to open a branch of Haldiram in Nagpur in 1968.

After coming to Nagpur, Shivkishan saw

that the people there loved sweets like balushas,

Gujarati peda, Mysore pak and laddus.

Meaning, the people there loved sweets but till now

they were not exposed much to sweets from other parts of India.

Seeing this opportunity,

Shivkishan started selling his favorite

kaju katli along with bhujia in Nagpur.

Initially customers were hesitant in buying it,

hence Shivkishan started offering

free samples to his customers.

Once tasted, people went crazy for the kaju katli

and the demand skyrocketed.

Seeing this success,

Shivkishan also started offering sweets

like malai laddu, rasgulla, and ras malai

and knowingly or unknowingly this was the beginning

of Haldiram's becoming the biggest player in the Indian sweet industry.

By 1971, two outlets of Haldiram's had opened in Nagpur

but Shivkishan did not want to stay here.

One day Shivkishan went to a restaurant named Kirti

which opened his eyes.

That restaurant offered only dosa and lassi

and there was always a crowd of customers.

It was from here that Shivkishan got the idea

of converting Haldiram's from a shop into a restaurant.

After discerning the market, he realized that Maharashtrians

prefer South Indian dishes like dosa and idli more.

Now he wanted to offer Bikaner's popular snacks

like samosa and kachori in his restaurant,

but before that he had to bring customers to his restaurant,

that is why he started with those dishes

which were in demand that is dosa and idli.

Shivkishan opened a 30-seater restaurant

and very soon all the seats in his restaurant

started being occupied.

Seeing this, they doubled their seating capacity

and also added samosa and kachori to the menu.

The customers who came to eat dosa and idli,

Shivkishan would ask them

to try samosa and kachori

and as it happened with Kaju Katli,

the same happened now.

Most of the the customers who tasted their samosa and kachori once,

became their regular consumers.

In the next few years, multiple outlets

of Haldiram's were opened in Nagpur

and due to this, Haldiram's in Nagpur

had transformed from just a bhujia business

to an Indian snacks, sweets

and restaurant business.

In 1975, Kolkata branch's Rameshwar Lal

separated from the family business structure

and became independent.

An agreement is made

according to which Rameshwar Lal

will not do business outside West Bengal

and Moolchand and his sons will not enter West Bengal.

By this time, the Nagpur branch of Haldiram's was doing very well

but Shivkishan had bigger plans than this in his mind.

He wanted to expand in a city

which would make Haldiram's a national level brand

and that city was Delhi, the capital of India.

Shivkishan chose his younger brother Manohar Lal to expand in Delhi.

By then Manohar Lal was working in Bikaner business

and Shivkishan was seeing a lot of potential in him.

In 1982, Manohar Lal came to Delhi with his younger brother Madhusudan

and saw that Chandni Chowk was full of famous snacks vendors.

He had never seen so much competition in his life.

But the good thing was that along with the competition,

there was also a lot of demand.

Manohar Lal bought a place for his shop with the help of Shivkishan

and started the business in 1983.

For the next one year, working day and night,

he built his reputation in the market

and started breaking even,

when a big tragedy hit him.

The terrible anti-Sikh riots of 1984

had scorched Delhi

and during this time Manohar Lal's

workshop and house too got burned down.

For the next 2 months,

Haldiram's business in Delhi had come to zero.

But Manohar Lal did not give up,

he took financial help from Nagpur and Bikaner

and acquired a new 300-square feet workshop in Delhi

and restarted the business.

The reputation he had built came in handy

and the business started picking up again.

Over the next few years, he not only expanded his current workshop

but also established a new 2,000-square feet factory

and also opened new outlets.

Business was continuously growing

but even after all this,

Haldiram's was still a medium-sized local business

but Shivkishan and Manohar Lal

wanted Haldiram's to become

a world class consumer brand.

People of every household in India

should consume their products.

He observed that after liberalization,

brands like PepsiCo, Kellogg's and Nestle

have started selling convenience foods in India.

Basically, packaged and ready to eat food.

But Haldiram's spotted a huge gap here.

All these foreign brands

were investing thousands of crores in marketing

packaged food of western culture to Indians

but at that time

no brand was selling Indian snacks

in long shelf-life packaging.

Seeing this opportunity, Haldiram's first

started selling its products like Bikaneri Bhujia and aloo bhujia

in nitrogen packaging, due to which their shelf life

increased from a few days to a few months.

Due to this new packaging, Haldiram's business

was no longer limited to Nagpur or Delhi.

Now people in even the smallest cities of India

could buy Haldiram's bhujiya.

After the launch, customers responded

very well to these products

and hence Haldiram's diversified its packaged food segment

into rasgulla, sonpapdi, pickles, kachori and even bhelpuri.

Within no time, Haldiram's started selling

more than 400 packaged food items.

To target consumers with different purchasing power,

they offered their products in different pack sizes.

Like, small packs of many of their products

are available for only 5 rupees

and big packs go up to 200 rupees plus.

Also, he knew that snacks are an impulsive purchase.

Therefore, Haldiram's, using the color psychology

made its packaging attractive

and finally, to reach every corner of India,

Haldiram's onboarded more than a hundred

distributors and lakhs of retailers.

Due to these strategies,

today people eat Haldiram's snacks

in almost every house in India.

And even in more than 80 countries like US, Singapore and UK,

Haldiram's is one of the most popular

Indian snacks brand.

About a 100 years ago,

Haldiram's started

by selling bhujia for two paise

and today the same Haldiram's

has done a business of more than 9,000 crore.

The story of Haldiram's proves

that by delighting customers,

constantly innovating products,

and changing with time

any big business can be built,

no matter how small the beginning.

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