Bikaji Foods International Limited (BIKAJI) Earnings Call Transcript
November 12, 2025
Earnings Call Speaker Segments
Ladies and gentlemen, good day, and welcome to the Bikaji Foods International Q2 FY '26 Earnings Conference Call. [Operator Instructions] I now hand the conference over to Ms. Hazel Rathod.
Thank you. Good afternoon, everyone. Thank you for joining us for Bikaji Foods International Q2 FY '26 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 through 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 detailed 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 shorter term, like in this GST changes started in third of -- announcement came in 3rd of September and then it was implemented 22nd of September. So in this quarter, in September month, as trade channels held back some purchases awaiting some revised new MRP because the GST changes came from 12% to 5%. So we have lowered down our MRPs, increased grammage impulse pack. So there was some short-term impact in September month. If you see this quarter in 2 halves, basically, July and August, it was doing fairly well where our ethnic snacks growth was up 10%, 11% versus overall at a quarter end level, our growth was close to 5%. So September was impacted in 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%. And if we 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 5 quarters and continuing our upward trajectory we have been driving from last many 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 fuel pricing policy has helped us in delivering this EBITDA. Our GM, excluding PLI, is 34% at a consol level, which is also strongest in last 8 quarters. This has been highest in last 8, 9 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 crores of revenue. This is a clear outcome of a consistent investment in building capital team, expanding market coverage and strengthening product capabilities. Our investment in Ariba Foods, which is our frozen factory in Indore has also helped us in delivering this momentum and growth. In ethnic snacks category, performance was muted. Of course, it was due to GST largely in September month. However, what we see that overall in this quarter, next 2 quarters, this will change, and we are expecting high-teen growth in ethnic snacks category in quarter 3 as well as quarter 4. Quarter 3 was also impacted in shorter term in a core market like Assam, where -- therefore, there was some GST change, but there was Zubeen Garg issue where the overall Northeast has been closed for 4, 5 days -- impacted by for 4, 5 days just post GST change. So it is impacted for short term. Overall, the quarter reflects the resilience of our business model and growth strength of our execution across categories and channels. From production capability lens, overall this quarter, quarter 2, we were at about close to 52% utilization. And what we see that in next -- we invested -- we completed a CapEx cycle in FY '25, where we invested close to INR 500 crores, including our CMUs. And for this government has also granted us PLI scheme of INR 261 crores. So we see that next 2, 2.5 years, there will be -- it doesn't require any major CapEx. It will be just a regular CapEx, NPD alignment or just few CapEx which we require for maybe in sweet category or some warehouse, which is coming in Bikaner big warehouse. So -- but yes, overall, from production lens, this capacity is enough to have next 2, 2.5 years supply.
Yes. Talking on in terms of the distribution expansion, so the momentum continues. However, we have not added many outlets in this quarter, still the [indiscernible] reaches close to 3.3 lakh outlets and very well on track to deliver 3.5 lakh plus outlets by end of the financial year. In terms of our marketing investment and the initiatives what we took, one of the major ones where we identified that the small pack growth is not in line with what we actually was looking at. So that's what we planned a mega promo on our small packs, which is INR 5 and INR 10 ethnic snack packs, wherein it was a [indiscernible] so equal amount of money going back to the consumer. So huge stuff, but this only started in the fag end of the quarter. So most of the benefit we would witness in this quarter 3 now. Besides this, we also started a campaign because looking at that bhujia, how can we further fuel the growth in this bhujia category, which is big for us. So we launched a campaign in our core market, which is bhujia house of Bikaner. This is what was very well executed and has started in the month of say end of September and now will run throughout this quarter 3 as well. In terms of business performance, quarter 2, we talked about overall for the company volume growth is 10.8%, revenue growth of 15.2%. Ethnic snacks, as Rishabh just touched upon, is at 4.6% growth. But if we break this 4.6% plus -- so 2 months, July and August were double-digit growth and September on account of 20 days huge market disruption that brought this number to this growth. Otherwise, in ideal situation, this would have been a high single-digit growth now if this disruptions were not there. Packaged sweets at a 32.3% growth. Now 2 factors. One, of course, there was early Diwali. So therefore, a little bit of business got shifted from quarter 3 to quarter 2. And secondly, which is more important is that the sweets wasn't impacted with this GST regime change. So in the erstwhile 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, out trade in terms of distributor or superstockist. Similarly, papad, which was not impacted, has delivered a 10% growth. Western snacks, again, in line with the ethnic snacks. So western snacks [indiscernible] from 12% to 5%. So that's what highly anticipated by the state, and there was quite a resistance. At our H1 first half, if we look at, so volume growth stands at 9.4%, revenue 14.8%, ethnic snacks at 7.7%, sweets 25% plus, western sacks 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%, right? And this is primarily on account of ethnic snacks, right? So if ethnic snacks would have gone, so we would have been in line with what the plan for the erstwhile number will be. So at H1 level, if we look at the large pack is at 65%. Talking about our markets growth. So core markets grown at 5.6%. Again, one of the key markets in core, which is Assam got impacted on a few days of market closure that was announced by the government, so complete shutdown. That's a big number. And ethnic sacks, which is huge for core states. And 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 sweet grown at 34.8% and export a whopping growth of 77.3%. Looking at first half in total, core is at almost about 7% growth, focus stays at 12%, other states close to 32% and exports at 70% plus. Performance-wise, if we look at -- we also look at that house small pack, which is INR 5 and INR 10 and vis-a-vis the large pack. So family packs with 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 2. So if we look at H1 in total, impulse pack has grown at 5.7%, family pack at 17.6% growth.
From retail lens this quarter, we have total retail count is around 21. That's mainly due to THF, so THF grown open -- through outlet in this quarter and these are 21 in total number. Next 6 months also, THF has a plan to open 3 to 4 outlets. So by end of this year, we'll be having close to 25 outlets at a retail level NPA total. And from Bikaji lens also, we opened 1 outlet. There is a plan to open 2 more outlets in the next 4 months. So overall, this number will go at around 27, 28. From commodity lens, largely commodity was in line, even in edible oil, this quarter 2 was same as largely quarter 1. We are seeing purchase -- all the purchase price laminates, it's largely same as quarter 1. Quarter 3 also, so we are entering into crop season, and we are seeing good crop coming in of the key pulses like moth dal or peanut. So we're seeing good crop. So we are not seeing major disruption in any of the prices of key commodities. From balance sheet lens normally in quarter 2, what we're seeing is the working capital normally increase compared to first quarter or year-end closing. Normally, this is a peak -- the Diwali time, inventory is at peak level. Also [indiscernible] is also at peak level because normally, we supply majorly in August to modern trade players and normally 30 days supply period. But also when we see quarter 3 end, it will again come at regular levels. So that's part of the presentation. We are happy to take all the questions.
[Operator Instructions] The first question is from the line of Abneesh Roy from Nuvama Institutional Equities.
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 3x 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 drive 3x 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 average -- overall number. And in others, is there some state you want to now call it focus because that seems to be doing much better. That is first question.
Yes, Abneesh. So let me explain. One is that the number of other states. And if we look at the TAM, other states is almost about 48% of the category business. That's one part. Second is when we take focus, focus is not just from a share of business standpoint. It is also that where we are doing or building our general trade business. So not an opportunistic trade. Other states when we say to your question which states -- Maharashtra and Gujarat has 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 stuff. So that's the reason. Also, if you look at that in the -- during festive time, so the free gifting also is very, very high in that stuff. So in the quarters to come, you will see that the other states will slightly slow down in this.
Understood. And what exactly 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 states? So what is the difference?
So difference is that in other states, the general trade contribution will be very low versus other channels, so which is new age, which is modern trade, which is institution, right? Whereas focus states, if you look at, it's primarily general trade itself. So which is where your selling are [indiscernible] there.
Sure. My second question is the early Diwali has definitely helped Q2 overall volumes and obviously, packaged sweets, et cetera. 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?
So certainly, Q3 will be better. One is that the fallout of quarter 2 would get into quarter 3. That's one. So therefore, what we are confident of is that the ethnic snacks, which is now emerging as 4.6% growth in quarter 2 should be mid-teens or high teens number in quarter 3 itself. So that in itself would be one reflection of how GST would impact and that stuff. And overall, at about half the quarter is almost over, so we see quite a good traction at all levels in this stuff.
And negative impact of Diwali shifting on sweets business, is sweets business strong?
So sweets certainly will be because it's a seasonal business. So if it has got impacted, sweets would be a negative impact in quarter 3.
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. But yes, if you look at overall as a company, we certainly will be a double-digit growth in terms of volume.
Sure. Sir, last quick question. In terms of GST biscuit company, you are saying compliance will really improve. In your case, also 12% moves to 5%. So if you could tell us from a competition from local companies, they were earlier not paying too much tax given 5% GST avoidance was there. And in this industry, it's possible. So 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?
So 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%. So therefore, this will be an added advantage to an organized and large players. Unorganized would certainly not benefit of this stuff. They will be at a losing end.
The next question is from the line of Nitin from Emkay Global.
My first question pertains to -- would you like to quantify the impact of destocking and Assam 4 to 5 days related disruption?
So it's tough, but what we're seeing from the data that it seems like it will be -- should be around -- between 3% to 5% of ethnic snacks business.
And this will be fully recovered in Q3 with the restocking?
See, it will -- we would try and ensure to recover it to the core. But honestly speaking, we being a discretionary product. So if there is an opportunity loss, right, so you cannot make it, but certainly in terms of pipeline billing, everything will go up in that stuff. So when we talk to Nielsen or the market offtake data, there has been instances wherein retailers were stock out and they did not buy because they were aware of that 24th onwards, they will get a discounted price. So 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 like how is our aspiration for second half? So like with restocking -- part restocking in 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?
So overall, if you look at the seasonality business, let's say, talking about sweet, so -- 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. So overall, Diwali, if you look at, yes, sweets has done very well for us. But in this quarter, because of early Diwali, so it will witness a downside on that stuff. But the rest of the business, if you look at 70% of our ethnic snacks and say, 7%, 8% western snacks, this certainly will be on the high teens growth number.
Got it. And last question pertains to -- would you like to throw some light into the performance of the THF, Ariba and Bikaji retail operations?
Sure. So from Ariba lens [indiscernible] working for us. So that's merged into Bikaji Foods. Ariba has worked well for us as you will see the same from our export numbers as they have a frozen capability, and that's why we acquired that in last year. Regarding THF, THF is doing extremely well for us. So they have opened close to 14, 15 outlets and 15 outlets to be precise and doing extremely well for us. Like this October also being Diwali season, they've done extremely good work and getting great response from all consumers. And we see great opportunity in THF in coming years. And from a retail perspective, Bikaji retail, so we have an outlet in Sikar. And overall, we have 6, 7 outlets in Bombay as well as in Sikar. So we'll open 2 more outlets this year and by next 3, 4 months.
And lastly, would you like to highlight like how is the profitability of Ariba where we have seen accelerated export sales?
So Ariba is largely CMU and currently, it's underutilized. So I think in next 1.5, 2 years, it will become profitable.
The next question is from the line of Anand Shah from Axis Capital.
So firstly, on the margin side, you did highlight that commodities are pretty benign. So to that extent, H2 also, one should expect that these kind of margins, at least on the gross level should be maintained?
Yes, that's what we also expect like without PLI, we have achieved 34% gross margin at consol level, and this is the highest in the last 8, 9 quarters. And we also expect the same as we have seen most of the quarters has passed by, like we are at 50% in the quarter. And we have not seen any uptick in any raw material as of now.
Got it. Got it. And my second question is on the western snacks. I mean, you did highlight the GST impact on ethnic. It's a similar impact even on western also this quarter.
Yes, exactly. So that's what I'm saying, which was flat this quarter, will definitely will move up in high teens during this quarter.
Also category -- this category [indiscernible] from this year of western snacks at overall level.
Category is what -- sorry, I couldn't hear you. category?
So overall, western snacks as a category, if you see, has also not done well. So I mean, not that it is just because it's overall also, there's a slowdown. But -- and this could be an impact of GST, but not alone GST, overall slowdown. But we got impacted and this would be -- you will see the upside of swing in this quarter now.
Got it. And yes, 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. So is that scenario sort of behind and now you should grow much better or that category issue still persist?
No. See, we are very small. So I think we -- the category lens is not fair stuff to benchmark with because we are a small drop in the ocean. But so 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.
And this -- the high teens or slightly higher would be the overall aspiration as well over the next 2, 3 years in western?
In Western, yes.
Got it. Got it. On a retail lastly, I mean, 21 outlets INR 28 crores. So what is the ambition here? I mean, H1, you've done about INR 50 crores. So is this the run rate we should expect? And what would you be sort of gunning for in FY '27?
So largely FY '25/'26, what we see that next 2, 3 years is retail outlets from 27, 28 can go up to 35 -- close to 40 in the next 2 years.
Okay. Okay. So from today, 21, you're looking at 35, 40, maybe by FY '28 end, is it?
Yes.
Got it. Got it. And so revenues, I mean, it's been tracking at INR 1.5 crores odd roughly, let's say, per store. So that is where it should continue and all, is it?
Yes.
The next question is from the line of Shirish Pardeshi from Motilal Oswal.
Manoj, I need some clarification. When I look back your Slide 20, you have shown in quarter 2, our family packs has grown about 19% and impulse has grown 3%. Now I just want to understand, if I take a queue from the other player, in the small pack, people have increased the grammage on the large pack, they have cut the price. So how this number is looking different for you?
So one is that whatever impact has gone up -- the post GST will only reflect in quarter 2, right? Secondly, that in this quarter, there's a huge contribution from sweets and sweets as the number speaks by themselves. And sweets is all about family pack. So that's the reason also. So therefore, this is share of business basically is by far high in family pack.
Okay. So let me put another way. You mentioned that our other markets are almost 45%, 46%. And 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 doesn't add up.
No. So Shirish, let me clarify that even in our focus or other markets wherever we are. So 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. So there, our share in large pack is by far higher than the small pack. I mean if we look at in terms of the market share, so we would be the second highest in terms of market share in UP. But when you look at small pack, we are very, very weak, and that's where is the opportunity. So play of family pack is there focus and other markets also.
Okay. So let me ask and try a little more. If overall volume is 10.8% for the quarter, can you split the packaged sweet volume and ethnic snacks, which is the core?
So Shirish, so largely our ethnic snacks overall category has grown close to 4.6%, and we have taken 3%, 3.5% price. So this ethnic snack category is growing around 1%, 1.5%.
In terms of volume.
Volume.
And packaged sweet would have been higher of 20%?
Yes, of course, 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?
So volume decline, this should be close to 2.5%, 3% because we begin price arrest.
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?
Yes, of course. So that's what we have seen in the last 40, 45 days, we have seen again, good demand coming in from across all markets, not just from [indiscernible] market. And for us in ethnic snacks, we are doing the same production like it was in Diwali season or non-Diwali in first half. So we are seeing good uptick in all in ethnic snacks business.
Okay. And 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 but 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?
So yes, the local players play strong, which earlier was as well. But 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 the transition of old GST to new GST. I think, Shirish, it's too early to comment. But certainly, the room which earlier they had of, say, 12%, which now has come down to 5%. So it's reduced by 7%, which should adversely impact these local players.
The next question is from the line of Abhishek Mathur from Systematix.
Just wanted to check on our distribution reach, you have indicated that we would be reaching a number close to 3.5 lakhs by the end of the current financial year. But just looking a bit far ahead over the next maybe 2 to 3 years, what could be the reach that we are targeting? Do you have a number in mind here? And what would be the regions where we would be looking to expand this reach?
So the numbers what we have for next 3 years, if you look at, so we intend to reach to 5 lakh outlets as our direct coverage. So if we break down by year, it is adding 50,000 outlets year-on-year. Now the growth, the number addition would come across except for other states, so primarily in the core states and in the focus states. So in core states, focus would be to go down to fucus states whereas in the focus state, it would be, say, primarily urban and rural say 10,000-plus kind of stuff. So that's the where to play what we have identified for instance.
Right. Very clear, sir. And also, I just wanted to check in terms of our more mature stores or maybe the stores which are more than 1 to 2 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 1 year or so in terms of throughput per mature stores or old outlets?
So if we look at -- we break the growth into, say, organic or inorganic. And when I say inorganic, it's by reaching to new stores. So about 80% of the business is coming from the mature store or where we already work there. And the 20% is the growth which is coming from inorganic growth kind of stuff. So stores which are less than a 1-year old kind of ones.
The next question is from the line of Darshit Vora from Asit C Mehta Institutional Equities.
My questions have been answered. And congrats on the performance.
Thank you so much.
The next question is from the line of Priyank from Vallum Capital.
I had a question on the innovation side. A call out on the numbers for the innovation that we would have done it over the last 1, 2 years? Would you want to call out certain innovations like you called out millet bhujia last quarter? What would be the contribution coming up from the such innovations that you would have developed over 1, 2 years in the total revenue?
So the contribution from NPDs, what we call is about 2% to 2.5% in our overall revenue. That's what it is. Millet, what you just now spoke about. I mean it's very, very small and in a very nascent stage. But I think this will start adding value or numbers to our overall number maybe in 12 months' time from now. So besides millet, what we also added was some variance of Falahari mixtures and all that stuff, which we felt and the research team figured out that there's a huge demand because [ snackery ] during fasting times is also picking up. And that's where we have launched a couple of SKUs there, variants there. Similarly, like paneer bhujia what we added. So while we were leaders in the Bikaneri Bhujia, we added a variant of paneer bhujia, which is doing extremely well for us and is our NPD for us. So that -- it's an ongoing cycle. So there are lots of products in the funnel. And as they get clearance from, say, finance in terms of they have to have -- there should not be EBITDA or gross margin erosion, has to add value. So as they get clearance, as it get tested in certain markets, and that's how we launch. So it's an ongoing cycle. Numbers, what we look at in our, say, budgeting AOP, annual operating plan standpoint, we look at about 2% to 3% should come from NPDs.
And in this 2% to 3%, paneer bhujia that you would have developed would be contributing the largest one.
Paneer bhujia would be one of the largest in the recent times.
Understood. On the impulse pack, sir, you did mention about the higher discounting coming up from the unlisted -- unorganized players in the last quarter. And then that's visible even this quarter. So what would be the strategy? I mean I do find you also starting a promo on the INR 5, INR 10 pack. Why don't we -- why would we think of even being aggressive or being present in impulse. In fact, the family packs are high profitable for us. So going ahead, why would we even be present in impulse pack? Just a thought help me building on this.
So unfortunately, one cannot choose to refrain now from the impulse pack because if you look at the category size, 70% of the business comes from INR 5 and INR 10 pack. So this is just -- it's not a choice to keep away. However, we always have upweighted our focus on the large pack, and that's what is one of the reason that why our family pack contribution is better off, much high and which also translates or reflect in our EBITDA margins vis-a-vis if you compare with the companies which are primarily operating in the small packs. So -- but to get numeric distribution to get reach small pack is equally important.
Got it. And one last thing on the distribution side, the indirect reach outlets, which is 12.5 lakhs. 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 it should be? I mean is the direct reach outlets part of the indirect or not?
So direct -- indirect is overall where Bikaji stocks are present. And this stock would be present through a store room we are directly supplying. So this will be a subset of that stuff only direct reach.
So the important part would be the indirect reach, which is inclusive of direct, right? The total indirect reach that you would target, right?
So let me explain it in another way, that indirect reach or overall reach is what one cannot -- company cannot control. It will move that if I sell to a big outlet or wholesaler who in turn service or some small retailers come to him with 100 small retailers come, buy from him. So I will reach to 100 outlets if my stocks are sold well from that one store. So I will say that my direct reach is 1 and 100 is my overall reach. That's the difference. So your direct reach will build your indirect reach. That's what the approach or the way companies operate. Now what happens is that there is a diminishing return. So let's say, if I keep adding outlets, -- so today, if you look at, say, assuming, say, 3 lakh versus 12 lakhs. So that is 4x kind of a ratio here. Now it does not mean that if I do 6 lakhs outlet directly, so 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, but if I start going to him, so this will not add to my overall number. So 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. And within the direct deals, how many of them -- what percentage would be exclusive Bikaji?
So these are -- so there's nothing called it. So any retailer, wholesaler will be selling all products or different categories, different companies also. So there's nothing called that only store for Bikaji kind of thing.
And just on the numbers, direct distributor superstockist and depot, if you can just give out what -- how many of that are direct distributors, superstockists and depots?
So we will come back to you -- we will separately come back to you on this number. So maybe I'll not have exact number handy.
The next question is from the line of Ishant Lalwani from Ashika Institutional Equity.
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 2 to 4 years?
Yes, that's the target. And that's why we invested in the capacity that we want to achieve 70%, 75%. And we have like we grow our volume by 10%, 12% year-on-year, the numbers will become 70%, 72% in the next 3, 4 years.
Okay. And on the realization part, what is the current trend evolving over the next couple of quarters on realization?
Realization?
Realization.
So from next 2 quarters lens, we see overall ethnic snack, which is our core, we want to grow this at close to 15%, 16% and that's the target what we're taking on.
[Operator Instructions] The next question is from the line of [ Harpreet Kaur ] from Global Consilient Research.
My question is regarding the impulse packs and western snacks categories. The last quarter, you had hinted at an improvement in these categories Q2 onwards. And we have seen the contribution of impulse categories falling from 40% to 33%. And you had also talked about upgrading the INR 5 and INR 10 value products. So I would love to hear on your standing in this category.
So see, if you look at in this quarter's share of business, so this -- on the back of huge sweet 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 the small pack as well, but 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, q-com, e-com, the other platforms kind of a stuff. That's what it is. Yes, it got impacted much on this -- the GST stuff change because there was a disruption of about 15 to 20 days in that stuff, which you will see that in this quarter 3, there will be a pleasant surprise in terms of the numbers, what you'll see on the western snacks as well.
So are you looking at the fact that like you all are not currently eyeing upgrading of the INR 10 and INR 5 value products?
No, no. So that's -- see, that's the evolution curve. Now what happens is that INR 5, INR 10 becomes a recruiter pack. And then if you like my product, if you want to use it at home, all that stuff, so it starts upgrading. So it will be a never-ending kind of stuff. It's an ongoing stuff. We would want that a INR 10 consumer should move to INR 20 and so on. That's how -- and at the same time, would want to recruit new consumers or let's say, someone eating competition or a local unorganized stuff should try -- which is the trial pack would be INR 5 and INR 10. So that's how this circle will keep moving.
The next question is from the line of [ Rupali ] an individual investor.
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 3 to 5 years in Nepal?
See, let me take this question in 2 parts. One is that it's 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 it is that we certainly should be amongst top 3 players in that stuff and coming to a high single-digit market share in that in the next 3 years' time. That's what we are looking at.
Okay. And which products you are targeting over there, like ethnic snacks or western snacks as well?
So this would be primarily ethnic snacks.
Okay. So bhujia would be a major product?
Bhujia of course, because that kind of product, flagship product. So that certainly would be on the high. But not just bhujia, we'll have a variety of products under Namkeen, which we'll be selling there. Even today, we do sell. But 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 so it increased reach and the sweets 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 1 year. So we have just signed the JV recently, right? So now the factory is this thing -- the commissioning would take years' time. That's when we'll start production till then and as for many, many years, we have been supplying from India itself.
Right. Got it. And could you throw some light on the traction of millet bhujia recently launched?
So it's a very niche product. So I will -- it will be too early to talk about that what it is. But yes, the feedback from a few of the consumers and our research team, they keep taking feedback. So it is coming positive, but certainly, it's not a mass product kind of that also everyone will have it. So maybe after 3 months is what we'll have a right number or right projections to make. But it's a good product liked by many. It will not be a very high value contribution to overall business. But yes, this is an offering for select consumers who are more health conscious. I mean, this product serves them.
So are there more products in this line or...
So there are series of products. So we have, say, roasted products which are less unhealthy or normally it's been said as healthy products. So there are -- so we have a series of roasted range, which is there for now, I think, almost about 2 years now. And the contribution of these products to our overall business is less than a percentage. And rightfully so because we are a company which is highly distributed, I mean, so product which is selling it over 12 lakh outlets. Now this is INR 5 and INR 10 huge contribution within snackery, if you look at. And these products, when we say the healthy products or less unhealthy stuff are not in INR 5 and INR 10, they are large packs only. And therefore, there's a limitation of making it available. So coming to your question, there are lots of products, many products. Millet is one of a new addition in that.
[Operator Instructions] 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. And I think we could answer your questions. We'll be glad to take any further question, clarification if you wish to seek, you can reach out to us. Until 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.
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