Meet The Agarwals, Family Behind Haldiram. Know About Their Net-Worth, Property Dispute & More

The Indian food industry is incomplete without the renowned brand Haldiram’s. The Indian snacks and sweet brand that is loved by all needs no introduction, but do you know who is behind this multi-crore company? In this article, we are going to share everything about the founders, the Agarwal family, and the success story of your favorite sweet shop, Haldiram’s.

Haldiram’s started as a tiny sweet shop in Bikaner, Rajasthan, India. They wanted to redefine people’s perspective of traditional Indian snacks and sweets. Now, it is one of the prominent brands and a household name in India. The growing business overcame several obstacles and stood the test of time.

So, how did they make it on the 2019 Forbes India Rich List from a chawl in Bikaner?

Who is the founder of Haldiram?

At the tender age of 12, Ganga Bishan Agarwal also popular as Haldiram Ji made up his mind to modify the taste and ingredients of one of the products that we now know as the famous Haldiram’s bhujia. The young kid was bright enough to focus on making fine crispy bhujia by altering it from the fat, and a little bland version of the same.

He wanted to make the product irresistible to customers. Instead of besan (chickpea flour), he made the bhujia from an ingredient that was easily available in Rajasthan i.e. moth ki dal (moth flour).

The young boy of the Agarwal family didn’t stop there, he also marketed the product with such a price point that made the product exclusive from a mere commodity. Earlier, his grandfather Bhikharam used to sell it at 2 paise per kilo but he set the price at 5 paise a kilo. He renamed it ‘Dungar Sev’, after the then Maharaja Dungar Singh, to add appeal to the brand.

Haldiram’s remarkable success story

The Agarwal business venture became a success as their unique bhujia’s price skyrocketed from 2 paise a kilo to 25 paise in the early 1930s. It became a global business when merchants stopped by to purchase this bhujia for friends and family back home on their way to Kolkata. Ganga Bishan Agarwal with his sons Moolchand and Rameshwar Lal opened a business in Kolkata in the early 1950s with the help of well-wishers.

Haldiram’s Bhujiawala was later split into Haldiram’s Prabhuji and Haldiram’s. This became a massive success in a short time and after that, there was no looking back for them. The business expanded to other Indian cities like Nagpur – Shiv Kishen Agarwal and the capital city Delhi – Manohar Lal Agarwal and Madhusudan Agarwal.

Delhi Unit: Run by Manoharlal & Madhusudan Agarwal
Nagpur unit: Run by Shiv Kishan Agarwal
Bikaner Unit: Run by Shiv Ratan Agarwal
Kolkata Unit: Run by Rameshwarlal’s son Prabhu Agarwal

They offered high-quality traditional Indian snacks and sweets, and Haldiram’s gained brand popularity for its mouthwatering range of snacks, including sev, bhujia, and several traditional sweets. Haldiram’s products’ consistent quality and flavors earned the trust and loyalty of customers across India.

Journey of Haildiram in Delhi

The youngest sons of Moolchand, Manohar Lal, and Madhusudan wanted an independent business. The Agarwal family was not in favor of debt or taking loans as they believed in organic growth. So, Manohar Lal and his brother Shiv Kishan were forced to withdraw all their savings while establishing their business in Delhi.

In 1983, Haldiram’s started operating in Chandni Chowk but as bhujia was not a unique product in Delhi the brothers faced tough competition from established businesses like Bikanerwala and Ghantewala. The Agarwal brothers made a strategy by differentiating themselves by concentrating on adjusting flavors and innovating their products to meet the needs of the market.

However, during the 1984 Sikh riots, the family business met with a tragedy as their shop and apartment were burnt down in a fire. Manohar Lal sent his family back to Bikaner and with his brother Madhusudan built the business back up in Delhi.

Rebuilding their business in Delhi

Manohar Lal was educated unlike his predecessors, he took this opportunity to start afresh. He set up a business that was the foundation for the empire today. The young owners focused on innovation and automation. Their goal was to sell their products to people in the farthest corners of the country. While rebuilding their business they turned their apartment into a factory overnight. The entire family had to spend sleepless nights to meet the demands of the customers.

When the business picked up, Manohar Lal started looking for factory space to begin large-scale production. In the late ’80s, the factory was set up. The thing that contributed the most to Haldiram’s success in Delhi was the distribution of its products. Even today at railway stations and stalls around the country, as a substitute for loose change, the ₹5 Haldiram’s bhujia packet is used as currency. This is surely a testament to their success.

The Haldiram’s family went through disputes of inheritance like most family businesses

Earlier, Ganga Bishan resolved the family feud through a territorial division – each segment of the family would only be able to do business in the territories assigned to them.

Rameshwar Lal and his sons were only permitted to do business in West Bengal under this agreement. Initially, this agreement worked out, but eventually as the family branches in the other territories began to grow the business, the arrangement didn’t seem favorable.

In 1991, the family faced a court case as the Kolkata family refused to change their brand name to distinguish themselves from the Delhi brand. The case continued for almost 15 years, it took a toll on the family’s resources and emotional ties.

Finally, Delhi’s Haldiram’s became the sole owner of the trademark ‘Haldiram’s Bhujiawala’ in 2013.

Halidiram’s future ventures

To broaden their reach, Manohar Lal and his brother have come up with their recent venture Brioche Dorée, the second-largest bakery chain in the world. The bakeries will only be serving vegetarian food tailored to the Indian market for the first time.

Recently, breakfast products giant Kellogg’s has also shown interest in buying a stake in Haldiram’s (Nagpur and Delhi enterprises) – valuing them at $3 billion. It is yet to be seen whether this will turn into a partnership or a merger as Haldiram’s is inclined to control the family business.

On September 6, 2023, a Reuters report stated that the Tata Group is in talks to buy at least a 51 percent stake in Haldiram’s at a valuation of around $10 billion. But later both the companies officially denied the discussion.

When Tata Consumer Products denied news reports of the talks of buying a stake in Haldiram’s, the shares dropped 1.87 percent to Rs 862.5 at 9.20 a.m. Though on Wednesday, after the report surfaced the stock surged over 4 per cent.

Manohar Lal and Madhusudan’s debut on the 2019 Forbes India Rich List

Haldiram’s owners made it to the Forbes India Rich List in 2019, the grounded Manohar Lal said,

“We are thankful to our customers for our growth. We have only reached this position by the grace of God and also because of our customer’s faith and trust in us. We will continue to endeavour to delight our customers in the future. This is also the result of the dedication, loyalty and hard work of our employees”

The Delhi owners, Manohar Lal and Madhusudan, have been ranked 86th on the list with an estimated net worth of $1.7 billion.

आज Mumbai मे भारत के भुजिया (नमकीन) किंग्स #Kings के नाम से मशहूर हमारे #बीकानेर के चारों सगे भाईयो के साथ आपका भाई…..!!#Photo ( दांए ) शिवरतनजी Bikaji #Bikaner मनोहरजी (Haldiram) #Delhi
( बाएं ) शिवकिशनजी Haldiram #Nagpur मधुजी Haldiram #Delhi#Bhujiya #Namkin #sweets pic.twitter.com/vDL7OSFZHL

— Vinod Bhojak (@VinoBhojak) November 18, 2022

Haldiram’s global expansion

To serve the demand for Indian sweets in Europe, they aimed to expand their business in the International market. They set up a state-of-the-art factory in London. The growth has been amazing, but they are also facing several challenges. Besides traditional employees, the family business is hiring new professionals. As a world-class organization, they have to manage the balance between them.

The family needs to focus on succession planning to carry out a system that works and allows the organization to evolve and expand with each generation. Haldiram’s is all set for its future growth.

Also read: Here’s How Bikanervala, A Small Shop in Bikaner Became A Million-Dollar Company