Ladies and gentlemen, good day and welcome to the Bikaji Foods International Q2 FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchstone phone. I now hand the conference over to Ms. Hazel Rathore. Thank you, and over to you, ma'am.
Thank you. Good afternoon, everyone. Thank you for joining us for Bikaji Foods International Q2 FY 2026 earnings conference call. From the Management, we have with us Mr. Rishabh Jain, CFO, and Mr. Manoj Verma, COO. I now request Mr. Rishabh Jain to take us to the key opening remarks, after which we can open the floor for the question-and-answer session. Thank you, and over to you, sir.
Thank you very much, and thank you all for taking this time to join our investor call today. While the retail business performance presentation has already been shared, I'd like to take a few minutes to walk you through some key highlights before we open the floor for questions. We welcome this positive GST change in our core category, Ethnic Snacks, to be precise, which will have a long-term impact in making this industry more organized. However, this is also impacted in the shorter term, like in this GST change has started in the third of. Announcement came in the third of September, and then it was implemented on the 22nd of September. In this quarter, in September month, as trade channels held back some purchases, awaiting some revised new MRP because the GST change just came from 12% to 5%.
We lowered down our MRPs, increased the grammage Impulse Pack. There was some short-term impact in September month. If you see this quarter in the two halves, basically July and August, it was doing fairly well, where Ethnic Snacks' growth was upward of 10-11% versus overall at a quarter-end level, our growth was close to 5%. September was impacted in the short term, but overall, what we see that in longer term, longer term we see good results. Despite this, we delivered a robust top-line growth of 15.2%. If you see quarter-on-quarter growth, the growth was close to 27%. Our EBITDA came in at 15.4%, marking this as the highest level of EBITDA in the last five quarters, and continuing our upward trajectory we have been driving from the last 20 quarters.
This improvement also reflects a more balanced product-mix approach, as sweets have been delivered extremely well in this quarter, and distributing commodity price and our hedging policy as well as few pricing policy has helped us in delivering this EBITDA. Our GM, excluding PLI, is 34% at the console level, which is also strongest in the last eight quarters. This has been the highest in the last eight-nine quarters, reinforcing our positive structural improvement in our portfolio as well as pricing discipline. The export business continued its strong momentum, outperforming expectations. Our export business this quarter has delivered upward of INR 50 crore of revenue. This is a clear outcome of a consistent investment in building a capable team, expanding market coverage, and strengthening product capabilities. Our investment in Ariba Foods, which is our frozen factory in Bharat, has also helped us in delivering this momentum and growth.
In the Ethnic Snacks category, performance was muted. Of course, it was due to GST lagging in September month. However, what we see that overall in this quarter, next two quarters, this will change, and we are expecting high-teen growth in the Ethnic Snacks category in quarter three as well as quarter four. Quarter three was also impacted in the shorter term in a core market like Assam, where therefore there was some GST change, but there was Zubeen Gurg issue where the overall Northeast has been closed for four - five days, impacted by upward four - five days just post-GST change. It is impacted for the short term. Overall, the quarter reflects the resilience of our business model and growth strength of our execution across categories and channels. From product production, capability length, overall this quarter, quarter two, we were at about close to 52% utilization.
What we see is that in the next, we invested, we completed a CapEx cycle in FY 2025, where we invested close to INR 500 crore, including our CMUs. For this, government has also granted us PLI scheme of INR 261 crore. We see that next two - two and a half years, we do not require any major CapEx. It will be just a regular CapEx, NPD, or alignment, or just a few CapEx which we require for maybe in sweets category or some warehouse which is coming in and becoming a big warehouse. Yeah, overall, from production length, the capacity is enough to have next two to two and a half years' supply.
Yeah. Talking on in terms of the distribution expansion, the momentum continues. However, we have not added many outlets in this quarter. Still, the tally reaches close to 3.20 lakh outlets and are very well on track to deliver 3.5+ lakh plus by end of the financial year. In terms of our marketing investment and the initiatives, what we took, one of our major ones where we identified that the small pack growth is not in line with what we actually were looking at. That's what we planned, a mega promo on our small packs, which is INR 5 -INR 10 Ethnic Snacks packs, wherein it was a pay tier. Equal amount of money going back to the consumer. Huge stuff, but this only started in the second of the quarter. Most of the benefit we would witness in this quarter three now.
Besides this, we also started a campaign because looking at that Gujia, how can we further fuel the growth in this Gujia category, which is big for us. We launched a campaign in our core markets, which is Gujia, Huttu, Bikaji. This was very well executed and has started in the month of, say, end of September and now will run throughout this quarter three as well. In terms of business performance, quarter two, we talked about overall from the company volume growth is 10.8%, revenue growth of 15.2%. Ethnic Snacks, as Rishabh just touched upon, is at 4.6% growth. If we break this 4.6%, two months, July - August, were double-digit growth, and September, on account of 20 days' huge market disruption, that brought this number to this growth. Otherwise, in either situation, this would have been a high single-digit growth.
Now, if this disruption could not bear, packet sweets add up 32.3% growth. Now, two factors. One, of course, there was early Diwali, so therefore a little bit of business got shifted from quarter three to quarter two. And secondly, which is more important, is that this sweets was not impacted with this GST regime change. So in the usual regime, it was 5%, and it continues to be at 5%. So there was no holding of purchase from any of the intermediaries, be it retailer, outfit in terms of distributor or superstock. Similarly, papad, which was not impacted, has delivered a 10% growth. Western Snacks, again, in line with the Ethnic Snacks. So Western Snacks, the chips from 12% to 5%. That was highly anticipated by the trade, and there was quite a resistance.
At one first half, if we look at, so volume growth stands at 9.4%, revenue 14.8%, Ethnic Snacks 7.7%, sweets 25%+ , Western Snacks flat, and papad at almost about 8% growth. Now, if we look at shift in the large pack and small pack, so if we look at last year, family pack contributed 65.5%, whereas this has come down to 59.1%. And this is primarily on account of Ethnic Snacks. So if Ethnic Snacks would have gone, so we would have been in line with what the plan for the usual numbers have been. At the H1 level, if we look at large pack, it is at 65%. Talking about our markets growth, core markets grown at 5.6%.
Again, one of the key markets in core, which is Assam, got impacted now on a few days of market closure that was announced by the government, so complete turndown. That is a big number. And Ethnic Snacks, which is huge for core states. The third was GST, that deferment in the purchases in that stuff. Focus markets have grown at 12.3%. Other markets, on the back of modern trade, new age, and gifting, sweets grown at 34.8%, and exports a whooping growth of 77.3%. Looking at first half, in total, core is at almost about 7% growth, focus states at 12%, other states close to 32%, and exports at 70%+ . Performance-wise, if we look at, we also look at that house small pack, which is 5% and 10%, and vis-à-vis the large pack.
Family packs and large packs have outperformed with 18.8% growth, and the impulse of the small pack at 3.3% growth. Again, Impulse Pack was more impacted in this quarter two. If we look at H1 in total, Impulse Packs have grown at 5.7%, family pack at 17.6% growth.
From retail length, this quarter, the total retail count is of around 21. That is mainly due to THF. THF has opened two outlets in this quarter, and this has resulted in 21 in total numbers. In the next six months also, THF has a plan to open three- four outlets. By the end of this year, we will be having close to 25 outlets at retail level in total, and from Bikaji lens also, we opened one outlet. There is a plan to open two more outlets in the next four months. Overall, these numbers will go at around 20-28. From commodity length, largely commodity was in line. Even in edible oil, this quarter two was same as largely quarter one. We have seen purchase, all the purchase price, lemonade, it is largely same when we have seen it quarter one.
Quarter three also, we entered into crop season, and we have seen good crop coming in of wheat, bee keepers like moor dal or peanut. We have seen good crop. We have not seen major disruption in any of the prices of key commodities. From balance sheet length, normally in quarter two, what we have seen, the working capital normally increased compared to first quarter or year-end closing. Normally, these are peak Diwali times, so inventories at peak level. Also, data is also at peak level because normally we supply majorly in order to modern trade players and normal 30-day supply period. When we see it quarter three end, it will again come at regular levels. That is part of the presentation. We are happy to take all the questions. Thank you [crosstalk].
Thank you very much. We will now begin with the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to answer while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Abnesh Roy from Nuvama Institutional Equities. Please go ahead.
Yeah, thanks. My first question is on focus states versus others. Now, if I see the absolute size of the other states is almost similar to focus states, and the other states are growing almost 3 x of the focus states, if you could elaborate, which of these states in the others is growing so fast? Is there any one-off, any specific activation which has really drived 3 x the growth of focus? Because ideally, focus should grow the fastest, right? I'm not able to understand why focus has grown slower than the company overall number. In others, is there some state you want to now call it focus because that seems to be doing much better? That is the first question.
Yeah, Abnesh. Let me explain. One is that the number of other states, and if we look at the PAM, other states is almost about 48% of the category business. That is one part. Second is when we say focus, focus is not just from a share of business standpoint. It is also the way we are doing or building our general trade business, not our opportunistic trades. Other states, when we say to your question, which states? Maharashtra and Gujarat have done very well for us, and these are large states in terms of consumption as well. We have grown on the back of strong modern trade presence in that. That is the reason. Also, if you look at that during specific times, the sweets, gifting also is very, very high in that.
In the quarters to come, you will see that the other states will slightly slow down in this stuff.
Understood. What exactly do you do different in focus state? Is it that more percentage of advertising spend and activation spend versus the revenue salience? Is that why you call it focus state? What is the difference?
Difference is that in other states, the general trade contribution will be very low. It is other channels, which is new age, which is modern trade, which is institution, right? Whereas focus state, if you look at, is primarily general trade itself. Which is where you're selling a first order.
Sure. My second question is the early Diwali has definitely helped Q2 overall volumes and obviously packaged sweets, etc. Now, Q3, how are you seeing given the GST benefit will be there in November- December? Plus, if you could clarify in October month, if there was any negative impact of the GST transition, would you still expect that Q3 we should see double-digit volume growth as a company?
Certainly, Q3 will be better. Now, one is that the fallout of quarter two would get into quarter three. That is one. Therefore, what we are confident of is that the Ethnic Snacks, which is now emerging as 4.6% growth in quarter two, should be mid-teens or high-teens number in quarter three itself. That in itself would be one reflection of how GST would impact in that stuff. Overall, as about half the quarter is almost over, we see quite a good traction now at all levels in this stuff.
Negative impact of Diwali shifting on sweets business? Is sweets business strong?
Sweets certainly will be because it's a seasonal business. So if it has got impact, sweets would be a negative impact in quarter three.
In spite of that, you expect a good double-digit volume growth in Q3, right, on an overall company?
No, I spoke Ethnic Snacks, which is 70% of our business. Yes, if you look at overall as a company, we certainly will be a double-digit growth in terms of volume.
Sure. Last quick question. In terms of GST, biscuit companies are saying compliance will really improve. In your case, also 12% moves to 5%. If you could tell us from a competition from local companies, they were earlier not paying too much tax, even 5% GST avoidance was there, and in this industry, it is possible. When this becomes 5%, do you think still avoidance by the local players in terms of taxation will be there, or do you think now it will be a bit more level playing field in terms of compliance from local players?
See, you cannot control or ensure compliance from the local players, but yes, the room of play, this from 12% it comes down to 5%. Therefore, this will be an added advantage to organized at large place. Unorganized would certainly not benefit of this stuff. They will be at a losing end.
Thanks. That's all from my side.
Thank you. The next question is from the line of Nithin from Emkay Global. Please go ahead.
Thanks a lot for taking my question. My first question pertains to, would you like to quantify the impact of de-stocking and Assam four- five days related disruption?
It's tough, but what we've seen from the data is that it seems like it should be around 3%-5% of Ethnic Snacks business.
This will be fully recovered in Q3 with the restocking?
See, we would try and ensure to recover it to the core, but honestly speaking, we being a discretionary product. If there's an opportunity loss, right, you cannot make it, but certainly in terms of pipeline filling, everything will go up in that stuff. When we now talk to Nielsen or the market optic data, there have been instances wherein retailers were stocked out, and they did not buy because they were aware that 24th onwards they'll get a discounted price. There would certainly be a consumption loss, but I think most of it we will recover in this quarter.
Sure. This is good to know. Second question pertains to how is the accentuation for second half? So with the restocking part, part restocking Q3, and I guess the low-unit pack, higher grammage coming into full play from Q4, do you think for the overall business we can accelerate growth to high teens in second half?
Overall, if you look at the seasonality business, let's say talking about sweets, which was neither impacted adversely or positively either way because earlier also it was in 5%, would continue in 5%. There is a seasonality play. Overall, Diwali, if you look at, yes, sweets has done very well for us. In this quarter, because of early Diwali, it will witness a downside on that stuff. The rest of the business, if you look at 70% of our Ethnic Snacks and say 78% Western Snacks, this certainly will be on the high teens growth number.
Sure, Robert, thank you. Last question pertains to, would you like to throw some light into the performance of the THF, Ariba, and Bikaji retail operations? Thank you.
Sure.
From Ariba, is CMPO working for us? That is merged into Bikaji Foods. Ariba has worked well for us. As you will see, the same from our export numbers, they have a frozen capability, and that is why we acquired that last year. Regarding THF, THF is doing extremely well for us. They have opened close to 14- 15 outlets, and 15 outlets to be precise, and doing extremely well for us. This October also being Diwali season, they have done extremely good work in getting great response from all consumers. We see great opportunity in THF in coming years. From a retail perspective, Bikaji retail, we have an outlet in Sikar, and overall we have six- seven outlets in Bombay as well as in Sikar. We will open two more outlets this year and by the next three-f our months.
Thank you. Lastly, would you like to highlight how is the profitability of Ariba where we have seen accelerated export sales?
Ariba is largely CMU and currently it's underutilized. I think in the next one and a half- two years, it will become profitable.
Okay. Thank you. All the very best.
Thank you.
Thank you. The next question is from the line of Anansha from Axis Capital. Please go ahead.
Yeah, hi, Team. Firstly, on the margin side, you did highlight that commodities are pretty benign. To that extent, H2 also one should expect that these kind of margins, at least in the gross level, should be maintained.
Yeah, that's what we also expect. Without PLI, we have achieved 34% gross margin at console level, and this is highest in the last eight, nine quarters. We also expect the same as we have seen most of the quarters has passed by. We have made 50% of the quarter, and we have not made any uptick in any raw material as of now.
Got it. Got it. My second question is on the Western Snacks. I mean, you did highlight the GST impact on ethnic. It is a similar impact even on Western also this quarter.
Yeah, exactly. That is what I am saying, which was flat this quarter, will definitely move up in high teens in this quarter.
Also, category is down this year for Western Snacks at overall level.
Category as well? Sorry, I couldn't hear you. Category?
Overall, Western Snacks as a category, if you see, has also not done well. I mean, not that it is just because it is overall also, there is a slowdown. This could be an impact of GST, but not alone GST, overall slowdown. We got impacted, and you will see the upside of swing in this quarter now.
Got it. Yeah, I mean, just coming to that Western argument, you've been highlighting that you've seen a lot more regional competition in this segment, and hence your performance in Western has somewhat been volatile even though the base is small. Is that scenario sort of behind, and now you should grow much better, or does that category issue still persist?
No, see, we are very small, so I think the category lens is not fair stuff to benchmark with because we are a small drop in the ocean. Therefore, we would continue to grow, and as I said, high teens, while category certainly is not in that state to be growing in this space now. To that extent [crosstalk].
The high teen or slightly higher would be the overall aspiration as well over the next two- three years in Western?
In Western, yes.
Got it. Got it. On retail lastly, I mean, 21 outlets, INR 28 crore. What is the ambition here? I mean, H1, you have done about INR 50 crore. Is there INR 100 crore we should expect, and what would you be sort of gunning for in FY 2027?
Largely FY 2025-FY 2026, what we see is that next two, three years, this retail outlet from 20s - 28s can go up to 35, close to 40 in next two years.
Okay. Okay. So from today, 21, you are looking at 35-40 maybe by FY 2028 end, is it?
Yes.
Got it. Got it. I mean, you've been tracking at one and a half crore odd roughly, let's say per store. That is where it should continue and all of it?
Yes.
Got it. Got it. Okay. Thanks. Thanks a lot from me. Thank you.
Thank you. The next question is from the line of Shireesh Pardesi from Motilal Oswal. Please go ahead.
Yeah. Hi, Manoj, Rishabh. Thank you for the opportunity. Manoj, I need some clarification. When I look back at your slide 20, you have shown in quarter two, our family packs have grown about 19%, and impulse has grown 3%. Now, I just want to understand, if I take a cue from the other player, and the small pack people have increased the grammage, and on the large pack, they have cut the price. How is this number looking different for you?
One is that whatever impact has gone up, if the post GST will only reflect in quarter two, right? Secondly, that in this quarter, there's a huge contribution from sweets, and sweets as the numbers speak by themselves. And sweets is all about family pack. That's the reason also. This share of business, basically, is by far high in family pack.
Okay. Let me put it another way. You mentioned that our other markets are almost 45%-46%. If you see the new markets, I would tend to believe that it will start with the small packs and not with the family packs. In that context, again, this number does not add up.
No. Shireesh, let me clarify that even in our focus or other markets, wherever we are, family pack is what we've been selling for many years, and they are still strong there. It is that, let's say, for example, if I talk about UP, which is the largest consumption state, there are shares in large pack is by far higher than the small pack. I mean, if we look at in terms of the market share, we would be the second highest in terms of market share in UP. When you look at small pack, we are very, very weak, and that's where is the opportunity. Play of family pack is there in focus in other markets also, as well.
Okay. So let me ask and try a little more lunch. If overall volume is 10.8% for the quarter, can you split the packet sweet volume and Ethnic Snacks, which is the core?
Shireesh,
So largely our Ethnic Snack, the overall category has grown close to 4.6%. We have taken 3%-3.5% price. This Ethnic Snack category has grown around 1.5%.
In terms of volume?
Volume.
Packet sweets would have been higher of 20%?
Yes, of course. Upper 20, close to upper 20%.
Okay. So that means Western Snacks, which you have reported a decline of 5.2%, the volume decline would be much higher and sharper.
Volume decline should be close to 2.3% because we're again price-wise.
The other thing which I wanted to say, I mean, obviously, you guys are doing in and out. Do you think quarter by now, which is past 45 days, the GST disruption is now settled, and the trade will have the correct, I mean, the revised price or revised grammage, which is available?
Yeah, of course. What we have seen in the last 40-45 days, we are seeing again good demand coming in from across all markets, not just from core, but all markets. For us in Ethnic Snacks, we are doing the same production like it was in Diwali season or non-Diwali in first half. We are seeing good uptake in all Ethnic Snacks business.
Okay. Last question to Manoj. With the GST revision which has happened, I mean, this is which in the beginning, the participant was asking that it's a level playing field. Do you actually see on ground the local players are adjusting to the revised GST norms, or the competition has really gone up because discounting is one of the things which is perennially visible for the unorganized player?
Yes, the local players play strong, which earlier was as well. I think at this point in time wherein the resistance was more on the organized or the large players, which are reaping the benefit of whatever they lost in, say, in the transition of old GST to new GST. I think Shireesh, it's too early to comment, but certainly the room which earlier they had of, say, 12%, which now has come down to 5%. It is reduced by 7%, which should adversely impact these local players.
Okay. Thank you and all the best.
Thanks.
Thank you. The next question is from the line of Abhishek Mathur from Systematix. Please go ahead.
Yeah. Hi, sir. Thank you for the opportunity. Just wanted to check on our distribution reach. You have indicated that we would be reaching a number close to 350,000 by the end of the current financial year. Just looking a bit far ahead over the next maybe two - three years, what could be the reach that we are targeting? Do you have a number in mind here? What would be the regions where we would be looking to expand this reach?
The numbers what we have for the next three years, if you look at, we intend to reach five lakh outlets as our direct coverage. If we break down by year, it is adding 50,000 outlets year-on-year. The number addition would come across except for other states. Primarily in the core states and in the focus states. In core states, focus would be to go down, pop straight up, whereas in the focus states, it would be, say, primarily urban and rural to 10,000+ kind of a stuff. That is the way to play what we have identified for ourselves.
Right. Very clear, sir. Also, just wanted to check in terms of our more mature stores or maybe the stores which are more than one- two years old, not the new ones. In terms of the throughput per outlet, what are the trends that we are seeing? Is it fairly stable, or is there a decline or a slight appreciation that we are seeing over the past one year or so in terms of throughput per mature stores or old outlets?
As we look at, we break the growth into, say, organic or inorganic. When I say inorganic, it's by reaching to new stores. About 80% of the business is coming from the matured store or where we already was there. The 20% is the growth which is coming from inorganic growth kind of a stuff. Stores which are less than one year old kind of a thing.
Got it, sir. Quite clear. That's all the questions I have. Thanks and all the best.
Thank you.
Thank you. The next question is from the line of Darshit Bhora from Ashika Mehta Institutional Equities. Please go ahead.
Yeah. Hello. Yeah. My questions have been answered. Thanks. And congrats on the performance.
Thank you so much.
Thank you. The next question is from the line of Priyank from Vallum Capital. Please go ahead.
Yeah. Hi, Dave. I have a question on the innovation side. We followed on the numbers for the innovation that we would have done over the last one-two years. We want to call out certain innovations that you called out, Millet Bhujia last quarter. What would be the contribution coming up from such innovations that you would have developed over one-two years in the total revenue?
The contribution from NPDs, what we call, is about 2%-2.5% in our overall revenue. That's what it is. Millet, what you just now spoke about, I mean, it's way, way small and in a very nascent stage. I think this will start adding value or numbers to our overall number maybe in, say, 12 months' time from now. Besides Millet, what we also added was some variants of palari mixtures and all that stuff, which we felt, and the research team figured out that there's a huge demand because snacks during fasting times is also picking up. That's where we have launched a couple of SKUs there, variants there.
Similarly, like Pani Bhujia, what we added, so while we were leaders in Bikaneri Bhujia, we added a variant of Pani Bhujia, which is doing extremely well for us and is an NPD for us. It is an ongoing cycle. There are lots of products in the funnel. As they get clearance from, say, finance in terms of they have to have, they should not be EBITDA or gross margin erosion, has to add value. As they get clearance, as it gets tested in certain markets, that is how we launch. It is an ongoing cycle. Numbers, what we look at in our, say, budgeting AOP standpoint, we look at about 2%-3% should come from NPDs.
In this 2%-3%, Pani Bhujia that you would have developed would be contributing the largest one?
Pani Bhujia would be one of the largest in the recent one. Yeah.
Understood. On the Impulse Pack, sir, you did mention about the higher discounting coming up from the unlisted unorganized players in the last quarter. That is visible even this quarter. What would be the strategy? I mean, I do find you also starting a promo on the INR 5-INR 10 pack. Why would we think of even being aggressive or being present in impulse? In fact, the family packs are high profitable for us. Going ahead, why would we even be present in Impulse Pack? Just a thought, help me building on this.
Unfortunately, one cannot choose to refrain now from the Impulse Pack because if you look at the category side, 70% of the business comes from 5- 10 rupee pack. This is just, it's not a choice to keep away. However, we always have updated our focus on the large pack, and that is what is one of the reasons that why our family pack contribution is better off, much higher, and which also translates or reflects in our EBITDA margins vis-à-vis if you compare with the companies which are primarily operating in the small pack. To get numeric distribution, to get reach, small pack is equally important.
Got it. One last thing on the distribution side, the indirect reach outlets, which is 1.25 million. When I have to map this ratio to the direct reach, certainly the direct reach, of course, is growing. Should we consider that the indirect reach will also increase at the rate of direct reach? How should it be? I mean, is the direct reach outlets part of the indirect or not?
Direct, see, indirect is overall that where BKG stocks are present. This stock would be present through a store through whom we are directly supplying. This will be a subset of that stuff only, direct reach.
The important part would be the indirect reach, which is inclusive of direct, right? The total indirect reach that we would target, right?
Let me explain it in another way. That indirect reach or overall reach is what one company cannot control. It will move that if I sell to a big outlet, a wholesaler, who in turn services or some small retailers come to him, say, 100 small retailers come buy from him. I will reach to 100 outlets if my stocks are sold well from that one store. I will say that my direct reach is 1, and 100 is my overall reach. That is the difference. Your direct reach will build your indirect reach. That is what the approach or the way companies operate. Now, what happens is that there is a diminishing return. Let's say if I keep adding outlets. Today, if you look at, say, assuming, say, 3 lakh versus 12 lakh That is one four times kind of a ratio here.
Now, it does not mean that if I do 6 lakh outlets directly, my reach will become 24 lakh outlets. Because what will happen is that certain outlets who were buying from a wholesaler or, say, Metro Cash and Carry were earlier also selling Bikaji. If I start going to him, this will not add to my overall number. The number would, but my quality of service, my sales, and throughput will start going up. This is how it works.
Very clear. I understood now. In that reason, the direct reach, how many or what percentage would be exclusive BKG?
There's nothing called exclusive. Any retailer, wholesaler will be selling all products or different categories, different companies also. There's nothing called that only store for Bikaji kind of a thing.
Just on the numbers, direct distributor, superstockists, and depots, if you can just give out how many of that are direct distributors, superstockists, and depots?
We will come back to you. We will separately come back to you on this number. Maybe I will not have exact number.
Thank you. Thank you.
Thank you. The next question is from the line of Ishant Lalwani from Ashika Institutional Equity. Please go ahead.
Thank you, sir. Sir, you mentioned that we have achieved around 52% capacity utilization. Can we expect to reach the earlier guided level of 70% utilization over the next three to four years?
Yes. That is the target. That is why we have invested in the capacity that we want to achieve 70%-75%. We are trying to grow our volume by 10%-12% year-on-year. These numbers will become 70%-72% in the next three- four years.
Thank you. On the realization part, what is the current trend evolving over the next couple of quarters on realization?
Realization mean?
Realization.
From next two quarters' length, we see that overall, I think next week is a growth. We want to grow this at close to 15%-16%. And that's the target what we're taking on.
Okay. Sure, sir. Thank you.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Harpreet Kaur from Global [Consultant] Research. Please go ahead.
Good afternoon, all. Thank you for the opportunity. My question is regarding the Impulse Packs and Western Snacks categories. Last quarter, you had hinted at an improvement in these categories Q2 onwards. We have seen the contribution of impulse categories falling from 40% to 33%. You had also talked about upgrading the INR 5 - INR 10 value products. I would love to hear on your standing in this category.
If you look at this quarter's share of business, this is on the back of huge sweets, gifting, gift boxes, contribution. The contribution of family pack has gone high, which you will see that in the subsequent quarter, it will not be as much. It will come down. That's one. Second is that while the focus is on, or we want to drive this small pack as well, we continue to keep our eyes on, or as much focus on, the large pack as well because they are highly salient in the modern trade in, say, QCOM, ECOM, the other platforms kind of a stuff. That's what it is.
Yes, it got impacted much on the GST stuff change because there was a disruption of about 15 days-20 days in that stuff, which you will see that in this quarter three, there will be a pleasant surprise in terms of the numbers, what you'll see on the Western Snacks as well.
Are you hinting at the fact that you all are not currently eyeing upgrading of the INR 10 and INR 5 value products?
No, no. See, that's the evolution curve. Now, what happens is that INR 5-INR 10 becomes a recruiter pack. If you like my product, if you want to use it at home, all that stuff, it starts upgrading. It will be a never-ending kind of a stuff. It's an ongoing stuff. We would want that a INR 10 consumer should move to INR 20 and so on. At the same time, we would want to recruit new consumers. Let's say someone eating competition or a local unorganized stuff should try, which is the trial pack, would be INR 5-INR 10. That's how this circle will keep moving.
All right. Thank you and all the best.
Thank you.
Thank you. The next question is from the line of Rupalli, an individual investor. Please go ahead.
Good afternoon, everyone. My question is about the joint venture with CG Group of Nepal. Can you throw some light that what percentage of market share you are targeting for next three- five years in Nepal?
See, let me take this question in two parts. One is that it is in a very nascent stage. We have just signed, and it will take almost close to a year or a little over a year to get that production from the JV, which is Bikaji CG stuff. What we are looking at is that we certainly should be amongst the top three players in that stuff and coming to a high single-digit market share in that stuff in the next three years' time. That is what we are looking at.
Okay. Which products are you targeting over there? Like Ethnic Snacks or Western Snacks as well?
This would be primarily Ethnic Snacks.
Okay. So Bhujia would be a major product?
Bhujia, of course, because that's our product, flagship product. That certainly would be on the high. Not just Bhujia, we'll have a variety of products under Namkeen, which we'll be selling there. Even today, we do sell. I think as we produce there, our ability to compete with the other players there will be by far high and we'll invest behind our distribution model. As increased reach, and the streets would get us these numbers and shares.
Okay. So manufacturing has been already started over there?
Ma'am, that's what I said. It will take one year. We have just signed the JV recently, right? Now the factory listing, the commissioning would take a year's time. That's when we'll start production. Till then, and for many, many years, we have been supplying from India itself.
Right. Got it. Could you throw some light on the traction of Millet Bhujia recently launched?
It is a very niche product. It will be too early to talk about that, what it is. Yes, the feedback from a few of the consumers and our research team, they keep taking feedback. It is coming positive, but certainly it is not a mass product kind of a stuff that everyone will have. Maybe after three months is what we will have a right number or right projections to make. It is a good product liked by many. It will not be a very high value contribution to overall business. Yes, this is an offering for select consumers who are more health conscious than this product in search.
Are there more products in this line or?
There are a series of products. We have, say, roasted products which are less unhealthy or, normally, we would say there are unhealthy and healthy products. There are this. We have a series of roasted range, which is there for now, I think, almost about two years now. The contribution of these products to our overall business is less than 1%. Rightfully so, because we are a company which is highly distributed. I mean, the product which is selling at over 1.2 LAKH outlets. This is a INR 5 -1 0 INR huge contribution within snacks only, if you look at it. These products, when we say the healthy products or less unhealthy stuff, are not in INR 5 - 10 INR. They are large packs only. Therefore, there is a limitation of making it available.
Therefore, coming to your question, there are lots of products, many products. Millet is one of a new edition in that.
Okay. Understood. Thank you.
Thank you. A reminder to all participants, you may press star and one to ask a question. As there are no further questions from the participants, I now hand the conference over to the Management for closing comments.
Thank you, everyone, for taking time out. It was a pleasure talking to you all. I think we could answer your questions. We will be glad to take any further question clarification if you wish to seek. You can reach out to us. Till then, thank you. Thanks for your support.
On behalf of Bikaji Foods International, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.
Thanks [crosstalk].