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Finshots Daily

The Gopal Snacks IPO

Mar 9, 2024
06:52
Snipd AI
Exploring Gopal Snacks' business strategies and market expansion through IPO, analyzing revenue growth, family rifts, market share, and investor risks in the snack company's upcoming IPO.
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Podcast summary created with Snipd AI

Quick takeaways

  • Gopal Snacks diversifying product range to cater to changing consumer preferences towards western snacks.
  • Success of Gopal Snacks attributed to backward integration strategy, controlling costs effectively and achieving high return on capital employed.

Deep dives

Gopal Snacks' Focus on Diversifying Products and Business Strategy

Gopal Snacks, a prominent Indian snack maker, is undergoing an IPO aimed at raising Rs 650. The company has traditionally focused on branded ethnic snacks like Namkin and Ghatia, becoming the largest Ghatia manufacturer in India. However, to adapt to changing consumer preferences towards western snacks, Gopal Snacks has strategically reduced its dependency on the Rs. 5 product category, enhancing profit margins from 5% to 14%. By diversifying its product range and business strategy, Gopal Snacks aims to capture a larger market share and sustain long-term growth.

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