Haldiram’s, the iconic Indian snacks and sweets company, has signed an agreement to sell a 10% stake to Temasek, the Singaporean behemoth investor. The deal values Haldiram’s at $10 billion and is one of the biggest private equity transactions in Indian FMCG history.
As per reports, the funds collected from this strategic investment are expected to be largely utilized to ignite Haldiram’s homegrown and foreign expansion efforts. The company promoters have clarified that they will not keep any share of the fund with themselves, reflecting clearly on reinvestment from a business perspective.A Strategic Alliance
The transaction, which had PwC as the financial advisor and Khaitan & Co. as the legal counsel to Haldiram’s, is likely to set the stage for the company’s strong growth in competitive markets both domestically and internationally. The action would be in line with Haldiram’s strategy to grow its presence in global snack markets while strengthening its dominance in India.
A company spokesperson expressed enthusiasm about partnering with Temasek, “We are excited to welcome Temasek as an investor and partner. Their experience will be invaluable as we continue our growth journey,” the spokesperson said.
Future Prospects
Sources also said that Haldiram’s is in advanced talks to sell another 5-6% stake, which could be worth about $500 million. The second round of equity sale is to further strengthen the capital base of the company.
PwC India Chairman Sanjeev Krishnan was proud to have helped Haldiram’s become a global FMCG player. He said the tie-up with Temasek is a classic example of how Indian family businesses are making their presence felt globally.
The deal remains pending regulatory approval, but those in the know are hopeful that it will get done quickly. Once complete, this strategic tie-up may reshuffle Haldiram’s market equations and boost its emergence as a global snack giant.
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