Anish Basu Roy and Sagar Bhalotia Pioneering Healthy Snacking with TagZ Foods

In the world of entrepreneurship, it’s not uncommon for individuals to embark on multiple ventures, each with its unique challenges and opportunities. Anish Basu Roy, a seasoned entrepreneur, and Sagar Bhalotia, his partner in innovation, have demonstrated resilience and innovation through their journey in the competitive snacking industry. Together, they co-founded TagZ Foods in May 2019, aiming to revolutionize the snacking landscape by offering healthier alternatives that cater to the evolving tastes of the Generation Z (Gen Z) consumers. Anish Basu Roy’s entrepreneurial journey was marked by prior experience in roles at global giants Nokia and Coca-Cola. He co-founded Shotang, a retail distribution platform, where he honed his entrepreneurial skills for over five years. Subsequently, he ventured into the healthcare sector with a brief stint at Healthifyme. However, his passion for creating innovative and healthier snacking options led him to co-found TagZ Foods.

TagZ Foods made its entry into the snacking market with a unique proposition – popped potato chips with less than 50 percent fat compared to regular counterparts. While many skeptics questioned the viability of another snacks brand in an already crowded market, Anish Basu Roy and Sagar Bhalotia were undeterred. They believed that there was room for innovation and disruption in the snacking industry. One aspect that set TagZ Foods apart from the competition was its pricing strategy. When it first launched in February 2020, a 30-gram pack of TagZ chips was priced at Rs 50, more than 100 percent higher than other conventional options. This premium pricing was a bold move and raised questions about whether it could gain mass appeal.

Furthermore, TagZ Foods aimed to defy conventional wisdom by not limiting itself to a single product or category. Anish Basu Roy emphasized the importance of diversity in their product offerings, highlighting that growth required expanding beyond a single category. This approach challenged industry norms and garnered both curiosity and skepticism from critics.

Fast forward to May 2023, and TagZ Foods has achieved impressive results. The company has reported operating revenue of Rs 23 crore, a significant leap from its modest beginnings. In FY20, the brand recorded just Rs 10.34 lakh in revenue, which soared to Rs 1.47 crore in the following fiscal year and reached Rs 8.97 crore in FY22. This remarkable growth of 230 times in just four years is a testament to the brand’s resilience and consumer acceptance. While this growth is noteworthy, it’s essential to acknowledge that TagZ Foods also faced challenges along the way. Despite the impressive revenue figures, the company reported a loss of Rs 4.6 crore in FY22. Anish Basu Roy remains undaunted, pointing out that TagZ Foods is poised for significant success in the snacking market.

TagZ Foods attributes its success to several key factors:

• Sharp Positioning: The brand’s clear focus on catering to the Gen Z demographic, which values health, the environment, and planet-conscious choices, has set TagZ Foods apart. By addressing the specific needs and preferences of this generation, TagZ Foods has captured a niche market.
• Consumer-First Approach: Instead of solely chasing investors, TagZ Foods concentrated on building a product that resonated with consumers. The brand’s Consumer Stock Option Plan (Csop) was oversubscribed by 756 times, demonstrating strong consumer support.
• Rationalized Pricing: TagZ Foods adjusted its pricing strategy, offering a 25-gram pack for Rs 30, thereby making its healthier snacks more accessible to consumers. This approach reflects the brand’s commitment to balancing health and affordability.
• Diverse Product Range: TagZ Foods expanded its product portfolio beyond popped potato chips, launching dark chocolate center-filled Hemp cookies and exploring international markets. This diversification reflects the brand’s commitment to growth and innovation.

While TagZ Foods has made remarkable strides, challenges lie ahead. The brand’s sharp positioning, while appealing to Gen Z, may limit its appeal to a broader audience. Scaling the brand beyond its current niche will require strategic marketing and branding efforts. Moreover, expanding TagZ Foods offline may pose challenges, given the need for high brand awareness and presence. Competing with established giants in the chips market will require careful planning and execution.

Anish Basu Roy and Sagar Bhalotia are confident in their brand’s unique positioning and are determined to navigate these challenges. As TagZ Foods continues to innovate and provide healthier snacking options without compromising taste, it has the potential to become an international success story. Namita Thapar, Executive Director of Emcure Pharmaceuticals, is optimistic about TagZ Foods’ future, noting its urban Gen Z positioning and focus on food technology as key drivers of success. As the brand continues to grow and adapt, it has the potential to become a prominent player in the snacking industry.

In conclusion, Anish Basu Roy and Sagar Bhalotia’s journey with TagZ Foods is a testament to the power of innovation and resilience in the competitive world of entrepreneurship. Their commitment to offering healthier snacking options and catering to the needs of Gen Z consumers sets them on a path to success in the evolving snacking market.