Haldiram’s Promoters Change Plans: Now Offering Smaller Stake to Investors

The promoters of Haldiram Snacks Food Pvt Ltd. are now planning to sell a smaller stake of 10-15% instead of their initial goal of selling a controlling interest in India’s largest snack company, which has attracted interest from major global investors. This information comes from three sources familiar with the situation.

Private equity firms like Bain Capital, Blackstone, and Temasek Holdings are considering this deal, according to the sources. “The family has decided not to sell a controlling stake anymore. It’s likely to be a minority deal now,” said one of the sources. “Haldiram is a well-managed and profitable business that generates substantial cash. A minority stake makes more sense now.”

Earlier reports indicated that Bain, Blackstone, and Temasek were interested in acquiring a 51% stake in Haldiram, valuing the company at between $8 billion and $10 billion. Global consulting firm PwC India is advising the family on this deal.

Investors Eye India’s Growing Snack Market

The investors want a piece of India’s expanding snacks market, which is expected to double in size to ₹95,521.8 crore by 2032. “The firms have accessed the company’s data room and are currently conducting due diligence,” said another source.

Email inquiries to Haldiram Snacks Food, Bain Capital, and Blackstone did not receive responses, while a Temasek spokesperson declined to comment.

Previously, Blackstone had plans to partner with GIC and the Abu Dhabi Investment Authority (ADIA) for the controlling stake. Bain Capital was also looking to collaborate with its investors for a larger bid, according to reports.

“The PE firms are more comfortable with a smaller investment while still being able to participate in India’s growing food and beverage market through this company,” the third source mentioned. “Eventually, the goal would be to take this iconic brand public in the near future.”

Company Background

This deal follows the merger of Haldiram’s Nagpur and Delhi factions, which began last year. The companies split their fast-moving consumer goods operations into a new entity named Haldiram Snacks Foods Pvt Ltd, with 56% ownership from the Delhi faction and 44% from the Nagpur faction.

Haldiram began as a small family sweet shop and now offers over 400 varieties of sweets, snacks, ready-to-eat foods, beverages, and more, selling in over 100 countries, including the US and parts of Europe. The group’s total revenue, including its international business, is estimated at over ₹10,000 crore, or $1.2 billion.

In the competitive Indian snacks market, Haldiram competes with brands like Conagra Brands, Balaji Wafers, Bikanervala Foods, ITC, Parle Products, PepsiCo, Prataap Snacks, TTK Foods, and Urban Platter, among others.

According to a January report by IMARC Group, the Indian snacks and savory market is projected to grow from ₹42,694.9 crore in 2023 to ₹95,521.8 crore by 2032, with a compound annual growth rate of 9.08%. This growth is fueled by increasing urbanization, rising disposable incomes, and a shift toward ready-to-eat foods.