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Gopal Snacks Expansion: Modasa Plant Powers Namkeen Surge

Newz Daddy Healthcare Updates

Gopal Snacks, a leading name in India’s organised traditional snack sector, has started its commercial production of namkeen at its Modasa plant in North Gujarat. Until now, this facility was known for making potato wafers and fryums. The addition of namkeen production aligns with the company’s plan to grow operations and improve synergies across units in Rajkot, Modasa and Nagpur.

This is an important move for Gopal Snacks. By producing namkeen in Modasa as well as Rajkot, the company aims to serve its distributors faster and reduce the time it takes to reach customers, especially in northern and western markets. The expansion is expected to help meet rising demand in states such as Rajasthan, Punjab, Haryana and Madhya Pradesh.

Raj Hadvani, Whole-Time Director and CEO of Gopal Snacks, said the Modasa expansion is “an important step towards improving supply chain efficiency and meeting the increasing demand for our products across India.” He added that having most of the namkeen range made in both Rajkot and Modasa will strengthen the company’s presence in new markets and help maintain the high quality that its consumers trust.

Modasa is agriculturally rich, especially in key raw materials such as potatoes, peanuts, and black gram, which are essential for snack production. Gopal Snacks sources these ingredients from local farmers, reducing logistics costs and building strong local relationships. In addition, the company has built a cold storage facility capable of holding about 40,000 metric tonnes of raw materials at the Modasa site, ensuring year-round access and helping to stabilise production.

After the expansion, the Modasa plant’s production capacity has reached roughly 200 metric tonnes per day. Gopal Snacks has upgraded the facility with automation, better infrastructure, and process improvements. Its in-house engineering teams are leading the initiative, helping to boost consistency in product quality and operational efficiency.

The latest expansion supports Gopal Snacks’ long-term growth strategy: faster market reach, reliable product availability, and a stronger supply chain. By producing in Modasa, the firm expects to better serve distributors in northern and western India and to improve the speed and reliability of deliveries.

Gopal Snacks’ move to add namkeen production in Modasa is smart from a business point of view. Namkeen is a very popular snack in India. The traditional salty mixes, such as sev, bhujia, and mixtures, have strong demand, especially in regional markets. According to its own company profile, Gopal Snacks uses a “vertically integrated business model,” meaning it controls a large part of its supply chain, from raw materials to finished snacks.

Gujarat is emerging as a powerful region for processed food and agro-based industries. Reports say that North Gujarat is being pitched as an “agro-dairy powerhouse” with increasing investment in potato farming and cold storage infrastructure. This makes Modasa a strategic place for Gopal to set up expanded production, since the raw materials are easily available nearby.

The cold storage capacity at Modasa, 40,000 tonnes, is remarkable. According to Gopal Snacks’ own infrastructure details, this is among the largest in India’s snack industry. That scale allows the company to stockpile raw materials and prevent shortages or price shocks caused by seasonal fluctuations. It also points to a mature, capital-intensive operation.

Automation and process upgrades are not just about quantity; they are about consistency and quality, too. Gopal’s infrastructure page mentions its use of automated guided vehicles, conveyors and custom container vehicles for transport, which helps ensure that snacks are produced uniformly and reach distributors in good condition. Sourcing directly from farmers also fits into a socially responsible model. Gopal Snacks says it procures key raw materials like potatoes from local farmers, which helps support the regional agricultural economy.

However, the company has faced legal challenges too. In recent months, the Bombay High Court ordered raids following a trademark case in which Gopal Snacks alleged that other brands were using similar packaging to ride on its reputation. This shows that as Gopal grows, it also needs to protect its brand strongly. By expanding in Modasa, Gopal is providing more demand for local farmers, not just for potatoes but for peanuts and black gram too. That could boost farmers’ income, improve agricultural stability, and encourage more farmers to grow these crops. In addition, the large cold store gives farmers a reliable buyer and storage partner.

This model of connecting local agriculture and an organised snack business is very effective. Many modern food companies are following this route, combining agro-sourcing with processing, to improve margins and build long-term, sustainable operations. While capacity expansion is exciting, Gopal will need to manage risks. Raw material costs can be volatile, especially for crops like peanuts or black gram. If there is a bad harvest, costs could go up, or quality could suffer. Also, the organised snack market in India is facing some headwinds. According to recent data, snack consumption (including namkeen) did not grow in FY 25, possibly due to inflation, consumption fatigue or slower innovation. That could put pressure on companies to keep prices low while maintaining profitability.

Finally, managing such a large cold storage and automated plant is not trivial. Power, maintenance, and logistics costs could be high. If Gopal does not leverage its scale well, its costs might erode the benefit of the expansion. This expansion shows that Gopal Snacks is serious about scaling up and strengthening its distribution footprint. With the Modasa facility now producing namkeen, the company is better able to reach into northern and western markets more efficiently. The move also signals that Gopal is building for the long term: investing in infrastructure, farmers, automation, and brand protection. If executed well, this could help the company increase its market share, improve margins, and remain competitive in a crowded snack industry.

Given that Gujarat is emerging as a base for agro-processing, Gopal is well placed to capitalise on local resources and grow sustainably. The region’s strength in potato production and cold storage helps Gopal lower its logistics and raw-material risks.