Haldiram’s, India’s leading snack and savouries company, is reportedly in talks with Temasek Holdings Pte, a Singapore-based state investment firm, to buy a minority stake. It is understood that Temasek is seeking to acquire between 10 and 15 percent of Haldiram Snacks Pvt. Ltd., valuing the Indian snack giant at $11 billion, which could provide it with a platform for the eventual listing of the company through an initial public offering.
The interest comes at a time when major private equity firms have grown increasingly active in the snacking space, including Blackstone and Bain Capital, which have also signaled keen interest in this segment. Recent reports had suggested that Blackstone, along with Abu Dhabi Investment Authority and Singapore’s GIC, was in the process of filing a major bid to acquire up to 76% of Haldiram’s Snacks Food Pvt Ltd.
At that valuation, the consortium’s bid for Haldiram’s can take the market valuation to as much as ₹70,000 crore-₹78,000 crore if it wins the deal. Thus, Blackstone will have a controlling stake and enjoy a license over Haldiram’s product lines in perpetuity.
The Agarwal family has split operations between the two factions in Delhi and Nagpur. Food International from the Nagpur side reports revenues at ₹3,622 crore for FY22, while Delhi-based Haldiram Snacks Pvt Ltd reports sales figures at ₹5,248 crore in the same period. The two entities are being merged into a new entity called Haldiram Snacks Food.
In the process of their existence, different venture capital companies such as Bain Capital, Warburg Pincus, and General Atlantic tried to acquire stakes in this major food chain, which means that it is a prime investment opportunity. Haldiram’s has so far been there since 1937 when it was a small retail sweets shop in Bikaner; its products today reach more than 80 countries across the globe, which makes it a global snack brand. Temasek’s potential $11 billion stake in Haldiram’s highlights growing investor interest and could boost the brand’s market position. The discussions between Temasek and Haldiram’s point toward a potential stake acquisition, which could accelerate Haldiram’s expansion while enhancing Temasek’s footprint in India’s booming food sector.
