Bikano sees a turnover of Rs 1,800 crore by FY24: Manish Aggarwal, Director, Bikano, Bikanervala Foods

The snacks market is expected to see a sharp growth in the next few years, buoyed by changing consumer preferences and introduction of innovative products, says Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt Ltd. Brands are now getting wider reach on account of e-commerce and growing direct-to-consumer channels, Aggarwal tells ET Digital in an interview.

He explains how Bikano has come up with a multifaceted approach for sustainability in both its production and packaging processes. Edited excerpts:

Economic Times (ET): What’s your outlook of the snacks industry considering evolving consumer preferences?
Manish Aggarwal (MA): The Indian snacks market is anticipated to surge to Rs 70,731 crore by 2028. The industry is poised for significant growth in the coming years, driven by changing consumer preferences, a focus on quality food, and the introduction of innovative products. With an expanding presence in diverse retail channels, including e-commerce, and the strategic penetration of rural markets, the industry is capitalising on economic growth and rising disposable incomes. Innovations in packaging and government initiatives supporting the food processing sector further contribute to a positive outlook. As consumers seek convenient and diverse snack options, the industry is well-positioned for dynamic expansion and market evolution in the near future.

Bikano upholds the highest standards of total quality management throughout its manufacturing process, ensuring the production of safe and top-quality products from raw materials to finished goods. A recent investment of Rs 400 crore in a new plant spanning 25 acres in Greater Noida reflects the company’s commitment to expansion. Bikano envisions achieving a turnover of Rs 1,800 crore by end of 2023-24.

ET: What key trends will shape the future of the snacks market?
MA: Consumers are increasingly leaning towards better snacking options. Innovations in flavours and ingredients, including global and local influences, are gaining traction. Convenience remains paramount, with on-the-go snacking and portable packaging gaining popularity. The influence of e-commerce and direct-to-consumer channels is growing, providing brands with broader outreach. Additionally, the trend towards global and ethnic fusion snacks, the snackification of meals, and the incorporation of functional ingredients — all contribute to the dynamic evolution of the snacks market. Technology-driven personalisation is also playing a role, with apps and online platforms offering tailored snack recommendations based on individual preferences. These trends collectively reflect the dynamic and evolving landscape of the snacks industry.

ET: Can you share insights into Bikano’s strategy for market expansion, both domestically and internationally?
MA: Bikano’s market expansion strategy is rooted in a dynamic understanding of consumer trends. Recognising the digital shift, the company allocates resources strategically across above-the-line (ATL), below-the-line (BTL), and digital platforms. For metropolitan markets, the focus is on digital platforms, innovative campaigns and partnerships with modern trade outlets, catering to tech-savvy consumers. In semi-rural areas, a localised approach prevails, with extensive distribution networks and tailored marketing messages reflecting cultural nuances. Internationally, Bikano conducts thorough research to adapt products and strategies to align with local preferences. Localisation is pivotal, involving product modifications, packaging adjustments and strong partnerships with local distributors, ensuring a seamless presence in diverse markets.

ET: What sustainable practices has Bikano implemented in its production and packaging processes?
MA: Bikano has embraced a multifaceted approach to sustainability in production and packaging. In addition to prioritising sustainable sourcing, which involves the use of eco-friendly ingredients from renewable sources, the company places a strong emphasis on energy efficiency. This commitment is manifested through the widespread adoption of LED lights, a standard in the industry known for significantly reducing energy consumption.

Notably, Bikano is dedicated to further reducing its carbon footprint by transitioning to renewable energy sources for its manufacturing and distribution operations. The company’s forward-thinking initiative aligns with the global shift towards cleaner and greener practices in the business sector.

By transparently conveying its dedication to sustainability, Bikano establishes trust and resonates with the growing consumer demand for eco-conscious practices. This proactive communication strategy not only reflects the brand’s integrity but also educates and engages consumers in the journey toward a more sustainable future.

ET: How is technology being integrated into Bikano’s manufacturing processes to enhance efficiency and quality?
MA: Embracing technological advancements, the company has implemented state-of-the-art solutions to streamline various stages of production. Automated systems and smart machinery are employed to enhance precision, reduce manual errors, and optimise overall operational efficiency. This technology-driven approach not only ensures consistency in product quality but also allows for real-time monitoring and control throughout the manufacturing cycle. Additionally, data analytics and smart manufacturing practices contribute to informed decision-making, enabling continuous refining of processes for maximum efficiency.

ET: How does Bikano ensure the quality and safety of its snack products in the food processing phase?
MA: Through rigorous measures and adherence to industry standards. The company implements stringent quality control protocols at every stage of food processing, from raw material inspection to the final product. Advanced technology and automated systems are utilised to ensure precision and consistency in processing, minimising the risk of contamination or defects.

Bikano follows hygienic practices in its processing facilities, maintaining a clean and sanitised environment to meet stringent food safety regulations. The company also invests in regular training and development programmes for its staff to ensure they are well-versed in food safety practices.

Furthermore, Bikano conducts thorough quality checks, including sensory evaluations and laboratory testing, to verify the integrity of ingredients and the final products. The commitment to quality extends to packaging, where measures are taken to preserve freshness and prevent any compromise during storage and transportation.