Acquires 10% stake in snacks business for $1 billion
The sale is one of the largest recent transactions in India’s fast-moving consumer goods (FMCG) sector and could pave the way for more foreign investment in the industry.
Singapore’s sovereign investment firm Temasek has secured a deal to acquire nearly a 10 per cent stake in the snacks division of Haldiram’s for approximately $1 billion, according to a report by Reuters.
The agreement follows months of negotiations, with Temasek viewing Haldiram’s as a highly valuable asset that will bolster its focus on India’s fast-growing consumer sector. The deal also represents the increasing interest of global investors in India’s food and beverage industry, particularly in the savoury snacks segment.
While Temasek’s bid ultimately secured the deal, American private equity (PE) giant Blackstone had also made an offer for a 20 per cent stake but at a lower valuation. The sale is one of the largest recent transactions in India’s fast-moving consumer goods (FMCG) sector and could pave the way for more foreign investment in the industry.
Bankers suggest that Haldiram’s promoters have been considering an initial public offering (IPO) within the next year, aiming to capitalise on India’s buoyant stock market. If this materialises, it could further elevate Haldiram’s financial standing and market reach.
Haldiram Snacks Foods, the combined FMCG business of the Delhi and Nagpur branches of the Haldiram’s family, is a major player in India’s snack industry. The Haldiram brand in India is operated by three separate family-run entities based in Delhi, Nagpur, and Kolkata. However, the Delhi and Nagpur families have merged their FMCG businesses – Haldiram Snacks and Haldiram Foods International – into a single entity, Haldiram Snacks Foods Private Ltd (HSFPL).
According to market research firm Euromonitor International, the company holds nearly a 13 per cent share of India’s $6.2 billion savoury snacks market.
Beyond its packaged snacks, Haldiram’s also operates a chain of restaurants, further solidifying its presence in India’s food industry. Its strong market position had attracted significant interest from global investors, with several PE firms, including Bain Capital and Blackstone, competing to acquire a stake in the unlisted company, as earlier reported by Business Standard.
Haldiram Foods International’s consolidated net sales reached Rs 4,551 crore ($550 million) in 2023-24, marking a 10.9 per cent increase from the previous year. The company’s net profit rose to Rs 597 crore ($72 million) in FY24, up from Rs 436 crore ($53 million) in FY23. Under the restructuring, existing shareholders of Haldiram Snacks and Haldiram Foods International now hold 56 per cent and 44 per cent of the merged company, respectively. Following the Temasek transaction, HSFPL will manage the consumer product operations for the entire Haldiram group.