The sweet edge of innovation

Shivkishan Agrawal’s Haldiram business is a USD 1 billion enterprise today.

The company’s foundation was laid by Shivkishan’s grandfather, a visionary and entrepreneur who started out by assisting his father at a snack stall in the back alleys of Bikaner, where they sold bhujia (an Indian savoury snack) and other namkeen.

Innovation came very early to the business. As Shivkishan explains, “In those days, most bhujia available in the market was on the thicker side. My grandfather mastered the art of making thinner bhujia which quickly gained popularity in the market. It wasn’t easily available and hence sold at a premium in those days.” The journey started from there and there were many hurdles along the way. Strife in the joint family encouraged Shivkishan’s grandfather to venture out on his own. He then built everything from scratch and approached people he knew for help. As Shivkishan puts it, “He was very passionate and driven. After a lot of struggle, he started his first shop near a Jain Mandir, which was let to him by the trustee of the mandir. This was the first of many shops he would open in the near future.”

From there Haldiram’s growth journey commenced. Three sons joined the business and the venture grew from one stall to a business that churned out “100–200 kg of bhujia a week by the 1940s and ’50s”. Entrepreneurial spirit and willingness to take risks are ingrained in every business owner and a chance visit to a Kolkata wedding prompted Shivkishan’s grandfather to branch out in Kolkata: “The struggles my grandfather went through are a testament to his spirit of entrepreneurship, innovation and customer service, and justify his title of ‘Bhujia Baron’. The brand name ‘Haldiram’s’ was given to my grandfather by his maternal grandparents. His real name was Ganga Bhishen Shivkishan but because of his extremely fair skin colour, many of the family members started calling him haldi (turmeric). This name stuck and hence the brand name Haldiram’s.”

As regards his own journey, Shivkishan dropped out of school and joined the business which was then run by his father. He used to accompany his father to the shop regularly and was exposed to the business. The experience enabled him to understand the financial and operational aspects of running a business. He was also interested in and fascinated with ‘Marwari teachings’ and says that he still applies some of those in his business.

The group then expanded into Nagpur – not guided by a strategic vision this time but more on account of family reasons. Shivkishan also wanted to expand the product line to include sweets. Initially opposed to the idea, family members were eventually convinced and the shop in Nagpur soon sold snacks and sweets. Shivkishan explains the move as follows: “This was also when we introduced soan papdi to our customers, which turned out to be a game changer in the market. My experience of working in both Kolkata and Nagpur gave me an opportunity to innovate and offer unique products to customers.”

Looking ahead, Shivkishan wants to grow to a USD 2 billion company in the near future. Haldiram’s is looking to explore avenues such as international expansion, extension of product lines, quick service restaurants (QSRs), and mergers and acquisitions. He is aware that competition is an ongoing challenge and to beat the best, Haldiram’s needs to constantly innovate with products and offerings. He is very committed to innovation and said that innovative avenues have worked over decades for the business and will continue to.

Shivkishan has a very clear picture of the legacy he would like to leave behind: “I would like my sons and grandsons to continue taking care of the business, keep the business growing and carry forward my grandfather’s legacy. When I started out in Kolkata, I wanted to grow the business in many areas but due to pressure from senior family members, I felt restricted. I moved to Nagpur and we grew exponentially and disrupted many new areas of business. Today my soan papdi is known the world over. I want to be remembered as a person who thought differently and constantly strived to be innovative.”