The Snac'King': Raj Hadvani, CEO, Gopal Snacks Raj Hadvani's entrepreneurial spirit didn't just mean following in his father's footsteps, it meant paving new paths within the company.

A household name for Gujarat, a savoury taste for the mouth, Gopal snacks is a legacy business that is tickling the taste buds of India for generations. Raj Hadvani, the CEO and longstanding director of the family business, had a predestined entry into the business. As the only son, there was a natural expectation for him to take the reins from his father. From a young age, he showed an inclination toward business rather than a conventional job. His hands-on involvement began during his school years when he would help with tasks like depositing collections in the bank. With a formal education that included a B.B.A. and an M.B.A. specialising in Entrepreneurship and Family Business, Raj was well-prepared to fill the big shoes of a leadership role.

Branching out within the company

Raj's entrepreneurial spirit didn't just mean following in his father's footsteps, it meant paving new paths within the company. One of his significant contributions was the initiation of an export department, which had previously not existed. This move not only expanded the company's market reach but also diversified its business operations.

"I have started an export business in the company because previously we did not have an export department. I have basically launched the brands within the company. For example Cristos brand (chips), noodles brand (Shot Go), corn brand (Coringo), so the concept of internal branding came with me. I did not create a separate entity but did all these under the label of our company."

Raj was instrumental in launching several internal brand categories such as chips, noodles, corn, etc. These ventures were part of a broader strategy to segment the market and introduce innovative products under the company's umbrella. The internal branding initiatives represented the company's approach and willingness to move with time from traditional offerings, to a modern day approach to business.

Out of the ordinary

For a legacy business, it is difficult to take the road less travelled. One of the most transformative changes Raj brought to the company was in its packaging and branding. Traditionally, the company's products adhered to a specific colour scheme – red, yellow, and green. Raj introduced multi-color packaging for the first time in 2017, starting with their chips products. This move not only differentiated their products in a crowded market but also positioned the company as a forward-thinking, innovative brand.

"This is not overnight. Slowly, there are some moves. It is a journey. So we did segmentation, and we made a brand of chips. So that segmentation is a bold move. Because people have been eating from Gopal for 25 years. The customers seeing that type of packet is a first. So it takes time for people to digest in acceptance. It takes time in the team too. And even my father thought why should I do this? I said that if we want to be international, if we want to compete with national brands, then we will have to use their ways or formulas."

By increasing the size of the Cristos brand name and minimising the Gopal brand logo, the company managed to alter consumer perception, making it appear as though they were a national or even international brand. This strategic branding allowed them to command a premium price "and the leverage we got from all of these was our concept of becoming a youth brand," continued Raj.

One eye on acquisition

Raj acknowledges the potential opportunities within the startup ecosystem. However, he emphasises the need for these startups to offer something unique that the company cannot easily replicate.

"So far we haven't seen any startups that can impact our company in the way that we want to. If there is something that we cannot do or they have brought some new innovation, then definitely we will look at partnership."

His focus remains on innovations that can add substantial value to their portfolio rather than merely improving packaging or other minor aspects.

Jumping hurdles towards success

Like any other entrepreneurial journey, Raj's tenure hasn't been without its challenges. One of the most significant hurdles he faced was the transformation from a traditional business house to a modern enterprise. This involved building a professional team, fostering a culture of innovation, and integrating advanced technology into the business operations.

Currently, the company has the most presence in Gujarat, followed by Maharashtra and Uttar Pradesh respectively. With operations in 11 states and around 300 distributors outside Gujarat, there are no immediate plans to increase manufacturing capacity, the company is prepared to scale up once existing capacities reach 70-80 per cent utilisation.

The decision to pursue an IPO was driven by the need to settle financial obligations following a family split. The funds raised through the IPO were used to facilitate this transition as well as to ensure the business could continue to expand and operate smoothly.

The Ace up the sleeve

One of the company's most significant strengths lies in its backward integration. Unlike many competitors who rely on external vendors for raw materials, Gopal snacks produces its own. This includes running their own flour mill, maintaining a fleet of over 250 trucks, and even manufacturing the machinery used in their operations.

"The design of all the machines of Namkeen is done by our in-house team. We have developed the world's number one technology in-house, which is called automatic storage and retrieval system (it is a robot or computer-controlled technology that can retrieve or store inventory in defined warehouse locations. ASRS can help save space, boost picking accuracy and improve efficiency) where the finished goods are stored in the box. So in most of the world, it is most cost-effective and works the most in the lowest places."

Notably, the ASRS machine was made by Raj's father, Bipinbhai Vithalbhai Hadvani, by hand. "If a person selects a product, the machine automatically does it. There is no human touch. There is no interference."

From the very beginning, the company's philosophy has been to offer the best quality products. Whether it's chips or other snack items, their products are benchmarked against the best in the industry, with Raj confidently asserting that their quality surpasses even the leading national brands. This commitment to quality, coupled with innovative marketing and packaging strategies, has solidified their position as a premium brand.

"Normally, the company that manufactures raw material is bought from vendors. So, we make raw material ourselves. We have our own floor mill, we have more than 250 trucks in our company, the building and maintenance of those trucks are done here."

The journey of Raj Hadvani exemplifies how the next generation can honour a legacy while driving innovation and modernization. With the traditional commitment to top quality of items at the core, Raj's strategic vision and entrepreneurial initiatives have not only sustained the business but also propelled it to new heights. As the company continues to grow and adapt, the young entrepreneur's leadership stands as a testament to the transformative power of forward-thinking and strategic management in family businesses.