Top News

Bhujia will now have 5% GST

Now people across the country can get their favorite Bhujia and Namkeen at low prices. The government has reduced the Goods and Services Tax (GST) on Bhujia, mixer and other pre-packed salty products from 12% to 5%. This decision was taken in the recent 56th GST Council meeting and this change will come into effect from 22 September. This decision will not only provide relief to the general public, but also big brands like Haldiram, Bikano will also benefit. The cost reduction can increase the sales of these companies.

Good news for Haldiram and Bikano

Haldiram is the biggest name in the salty industry in India. The company has reached about Rs 14,500 crore in the financial year 2024-25 and the profit is about Rs 2,500 crore. In the last five years, the company has registered an average annual growth of 18%. At the same time, Bikaji Foods, owner of Bikano brand, is also a strong player in this market. Bikano produces around 9,000 tonnes of Namkeen every year, in which Bikaneri Bhujia is the biggest demand. Apart from these two brands, Balaji Wafres, ITC, and other companies are also playing a big role in the salty market.

India's Bhujia market will be 2 lakh crores

According to a report, India's salty and snack market can reach Rs 2 lakh crore by the end of 2025. This sector is expected to increase by an average of 13% every year. Haldiram alone in this market is about 37%. This is followed by brands like Bikaji, Balaji and ITC. However, about 32% of the markets are still with unorganized sector i.e. local and un -brand products.

What will change with GST decrease?

Consumers will get direct benefit of GST rate cut. Now pre-packed and labeled salty products can be cheap. While this will reduce the burden on the pockets of customers, there is a possibility of increasing the sales of branded companies. Low tax means that companies will be able to sell their products at cheaper prices, which will increase the number of customers and companies will benefit in large quantities.

Investors' eye on Indian salty brands

Now the salty brands of India have come in the visible not only domestic, but also global investors. Haldiram's current valuation is being estimated to be more than Rs 8,5000 crore. Many foreign companies have been interested in buying stake in it. After Haldiram, Bikano has also become a big name in this industry and its focus is on traditional products like Bikaneri Bhujia. Apart from this, the big FMCG sector company in the country wants to buy a stake in ITC and PepsiCo, Bhujia-Namkin making Balaji wafers. Along with this, a large private equity firms like TPG and Temasake are also preparing for 10% stake in Balaji Wafres, whose expected valuation is estimated to be around Rs 40,000 crore.