Bipinbhai Ventures into Snack Production with Loan, Gopal Snacks to Open IPO on March 6 with 3 Manufacturing Facilities

Gopal Snacks traces its roots back to the village of Bhadra in Gujarat, where its humble beginnings took shape. At the tender age of 13, the founder learned the art of making snacks, starting with creating traditional ‘farsan’ and later evolving to establish a small shop in our village, offering a blend of spicy and sweet ‘sev’ from just one rupee.

Bipinbhai Hadvani, the Chairman and Managing Director of Gopal Snacks Limited, narrates this journey. The company, under his leadership, is now embarking on a new chapter with its Initial Public Offering (IPO). The IPO is set to open on March 6th, with retail investors able to bid until March 11th.

In this interview, we delve into the company’s inception, its journey leading up to the IPO, and other insights shared by Bipinbhai Hadvani, the driving force behind Gopal Snacks. Read on for his insights…

Gopal Snacks: A Journey of Persistence and Innovation

The journey of Gopal Snacks commenced from the village of Bhadra in Gujarat. At the age of 13, I learned to make snacks and my father used to make ‘sev gathiya’ in our village shop. After mastering the craft, we began with just one product, a mix of spicy and sweet, priced at one rupee.

Initially, we sold our products in 10-12 nearby villages and then expanded to 52 villages. Later, with a capital of Rs. 8,500 invested with my uncle in Rajkot, we ran a business partnership for four years. Subsequently, I separated and started the Gopal brand at home.

During those times, I didn’t even have one rupee to invest. I bought things on credit and prepared snacks. In the afternoon, when students returned from school, I packed snacks for them. We used to give a commission of Rs. 2 per kilogram to the vendors. I have two brothers. They used to run shops, and they used to sell snacks on bicycles in nearby villages.

Gopal Snacks Production Facilities and Capacities

We have three production facilities at our disposal. Two are located in Rajkot and Modasa in Gujarat, while the third facility is situated in Nagpur, Maharashtra, along the Mumbai-Kolkata Highway.

Gopal Snacks Expansion Plans Post IPO

According to IPO documents, Gopal Snacks ranks as the fourth largest brand in the country in terms of market share. In light of this, the company’s expansion plans are geared towards continuous growth. 

Currently, we operate in 11 states, and to bolster our sales, we intend to increase our presence in 2-3 additional states. To achieve this, we will onboard new distributors to strengthen our distribution network.

Gujarat: Primary Market with Expansive Growth

Gujarat stands as our primary market, yielding significant returns. In the first half of fiscal year 2024, we recorded a remarkable 76% growth in revenue. Beyond Gujarat, our focus extends to Maharashtra, Uttar Pradesh, and Rajasthan, pivotal central states in our expansion plans.

Recently, we have expanded our presence in Telangana, Karnataka, and Jharkhand, with plans to launch in Odisha as well. These strategic moves reflect our commitment to broadening our market footprint and tapping into new opportunities across diverse regions.

Gopal Snacks: Diverse Product Portfolio

Currently, we have over 80 different products in our portfolio. Among them, ‘Gathiya’ is the highest selling product, reflecting its popularity among consumers.

Distribution Network and Storage Facilities

We directly supply our products to distributors, who then distribute them to retailers. We don’t engage with any franchise business or super stockists. We have a company app through which distributors place orders. 

We maintain comprehensive data on each retailer, including the products they sell and the quantities they purchase. All this information is available through our app, ensuring transparency and efficiency in our distribution network.

Consideration for Launching the IPO

We decided to launch the IPO when my brother and I separated, and I provided him with a loan. Launching the IPO was a means to repay that loan. We have significant growth potential, evident through our in-house profits. Our company is profit-making, which further supported our decision to go public.

Factors Concerning IPO or Company You Want Investors to Know

We are a company based in Gujarat. We pride ourselves on being recognized across Gujarat and understanding the philosophy of our company. We are inviting more and more people to be part of our journey. Our company’s aim is to consistently deliver high-quality products at reasonable prices.

Gopal Snacks’ Premium in Grey Market: Implications for IPO Listing

In the grey market, Gopal Snacks’ premium stands at 29.93%. Before the IPO opened, the company’s shares reached a premium of 29.93% in the grey market, equivalent to ₹120 per share. In this scenario, considering the price band of ₹401, its listing could potentially reach ₹521. This suggests that the listing price of the share differs significantly from its grey market value, indicating a dynamic market perception and potential investor sentiment.