Haldiram is one of the leading snack manufacturing companies in India. Haldiram’s promoters have made some major changes in their plans regarding the sale of the company’s stake. The promoters are now demanding to sell 10-15 per cent minority stake instead of the majority stake considered earlier.
According to a report in Mint, private equity giants Bain Capital, Blackstone and Singapore-based Temasek Holdings are currently evaluating Haldiram for potential investment. This marks a change from a previous plan to sell a controlling stake of 51 percent, which would have valued the company at between $8 billion and $10 billion. However, as noted in the report, the decision to sell the minority stake could be driven by Haldiram’s strong profitability and cash flow capacity.
Bloomberg previously reported that Temasek Holdings is in early talks to acquire a minority stake, which could value the company at about $11 billion. The investment is being seen as a possible precursor to an initial public offering (IPO), which could further expand Haldiram’s market presence.
Earlier this year, Bain Capital, Blackstone and Temasek had shown interest in acquiring a majority stake in the company. At the time, the deal was seen as a strategic move for global investors to gain a foothold in India’s fast-growing snack market, which is projected to grow to Rs 95,521.8 crore by 2032. Despite the low stake change, the long-term growth potential of India’s food and beverage sector continues to attract interest from private equity firms.
Haldiram Group merger and restructuring
This development follows a significant restructuring within the Haldiram Group. Last year, the company’s Nagpur and Delhi wings merged, forming Haldiram Snacks Food Pvt Ltd. The new entity is now 56 per cent owned by Delhi-based Haldiram Snacks Private Limited (HSPL) and 44 per cent owned by Nagpur-based Haldiram Foods International Private Limited (HFIPL).
The roots of the Haldiram brand go back to 1937, when founder Ganga Bhishan Agarwal started a small sweet shop. Over the years, the Delhi and Nagpur businesses have been operated separately, with the Delhi operations overseen by Manohar Agarwal and Madhu Sudan Agarwal, and the Nagpur operations managed by Kamalkumar Shivkisan Agarwal.
