GST boost and expansion to step up Gopal Snacks’ growth

Rajkot-based prominent snack manufacturer, Gopal Snacks, expects stronger growth this year, helped by the goods and services tax (GST) rate cut and expansion into new markets.

Rigan Raithatha, CFO of Gopal Snacks, said the GST reduction adds momentum to consumer demand. “The GST rate cut is another leg up to the consumption story… all this has boosted more money available to the consumer,” he said.

The company is maintaining its full-year revenue guidance of 15-20% growth from last year’s baseline, but expects to chase the higher end of that range. EBITDA growth is guided at 20-25%.

Gopal Snacks is also betting on higher sales volumes. About 70% of its sales come from ₹5 SKUs, and the company plans a mix of increased grammage and lower pricing in certain packs. Raithatha noted, “We would be expecting somewhere around 5-6% of volume growth.”



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The company is expanding through two long-term agreements for plants in Karnataka and Uttarakhand. These facilities are expected to add incremental revenue of about ₹90 crore and ₹100 crore, respectively, and reduce lead times by around 50%.

The Modasa facility, set to replace part of Rajkot’s production, has a capacity of ₹700-800 crore. Raithatha explained this is not additional capacity but a shift of operations, with 60% moving to Modasa and 40% retained at Rajkot.

The company is targeting gross margins of 25-26% this year, supported by easing supply chain issues after a fire at its Rajkot factory in December. Shares of Gopal Snacks, with a current market capitalisation of ₹4,500 crore, have risen more than 11% over the past year.

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