Haldiram Snacks Food, India’s largest manufacturer of snacks, has secured a deal with Temasek, a Singaporean private equity firm, to acquire a 10% stake in the company at a valuation of $10 billion. The deal is part of a larger plan to merge two separate entities, Haldiram Foods (based in Nagpur) and Haldiram Snacks (based in Delhi), which are both managed by the Agrawal family. The merger, which has been approved by the National Company Law Tribunal, aims to create a new entity, Haldiram Foods and Snacks, which will offer a range of products including salted snacks, sweets, retail stores, and eateries.
The deal is significant as it marks the first major investment in the Indian snacks industry by a foreign private equity firm. The valuation of the company, at $10 billion, is also notable, making it one of the largest in the Indian snacks industry. The company’s product portfolio, which includes popular brands like bhujia, popular among Indian immigrants worldwide, was a key factor in determining its valuation.
The deal comes as the Indian FMCG sector is witnessing a surge in mergers and acquisitions, with many companies looking to expand their presence in the snacks industry. The company’s promoters, the Agrawal family, had previously considered selling a majority stake, but decided to retain control within the family. The deal is expected to set the stage for an initial public offering (IPO) in the future.
The acquisition by Temasek is seen as a strategic move by the company to fund its growth plans and capitalize on the growing demand for snacks in India. The deal is also expected to attract more private equity and foreign funds to the Indian snacks industry, which is becoming increasingly attractive to investors.