Business

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

SAJ

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

Credit: Google

This clearly show other future goals of the company which were to take a dive into the share markets as well. Expectation are there they might do well with this because the company has created a well established goodwill among its customer through their product and advertising strategies. But we have seen that in recent times many IPO were launched but merely some could get success on it. One97 is one of the major examples of how an IPO could seem like a great book cover but when we open and read it, it provide nothing but hopeless expectation.

Also read: Higher EPFO rate for the employees for the financial year 2022-2023

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.

IPO

Credit: Google

SAJ is focusing on enhancing its sales and distribution capabilities in the southern, western, and northern regions to better penetrate the market. Singh acknowledged that organic growth would be the primary factor driving the expansion of the topline. However, he also mentioned that acquisitions may be a feasible option to consider during the course of the expansion.

SAJ is currently the fourth most dominant company in the organized biscuit industry, with a market share of 4%. Its formidable competitors include Parle, Britannia, and ITC’s Sunfeast. Despite this, SAJ is confident in its ability to secure the third position, and is equipped with the necessary resources to do so.

SAJ

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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