5000Cr Revenue in Next 5yrs, Biscuit Making Company Forecasted

What’s the news?

SAJ Food Products Ltd which owns the Bisk Farm biscuits and Indiaah like brand under its shelve has recently forecasted their future goals and in this they are assuming to touch 5000cr revenue mark

The IPO call

Mr. Vijay Kumar Singh, managing director of SAJ Food Products said, “our target is to reach the Rs.5000 crore topline in the next five years. And when we reach close to that point, it would be a good time to launch an IPO”.

SAJ Food Products needs to be very careful at the time of their IPO launch, the market are very uncertain nowadays.

Other strategies to be adapted

SAJ, established by the late Krishna Das Paul, holds a significant market share of 25% in the eastern region, thereby solidifying its position as the second largest player in the area. With an estimated gross revenue of Rs 2,100 crore in FY23, the company aims to generate 80% of its earnings from the eastern region alone. As part of its strategy to expand its nationwide footprint.

<figcaption class="pl-caption>Credit: Google

SAJ is aiming to achieve a 22% increase in its topline during this fiscal period. Presently, the company operates four units in Bengal, one in Bangalore and one in Nagpur to cater to the south, north and west markets respectively. A new production facility is under construction in Guwahati, which will be the largest plant established by SAJ to serve the north-east sector. The total investment for this project is estimated at Rs 200 crore. Once commissioned in the first quarter of FY24, the Guwahati plant will permit SAJ to fully leverage its existing Bangalore and Nagpur facilities for the local markets. Currently, these units also supply material to the east and northeast regions.

Moving forward, the company is exploring the possibility of utilizing third-party manufacturing, similar to industry trends. Under this arrangement, the vendor would cover the costs associated with plant investment while SAJ would pledge a 100% off-take. To expand its market reach and appeal to a wider demographic, the company has enlisted the services of Hrithik Roshan as its brand ambassador, with plans to also secure a southern star in the near future. In addition to its popular biscuit line, which generates 90% of sales, SAJ has diversified its operations to include cakes, Indian snacks, and sweets, enabling the company to expand its offerings and further drive growth.

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