Temasek Holdings, Singapore’s sovereign wealth fund, has approached the Competition Commission of India (CCI) for approval to invest in Haldiram Snacks Food Pvt. Ltd., the largest packaged snacks and sweets company in India. The investment will be made through a Temasek subsidiary, Jongsong Investments Pte, and is worth around 10% of the company’s equity. This investment values Haldiram Snacks Food at approximately $10 billion.
The notice filed with CCI stated that the deal does not pose any competition law concerns, and the company has outlined potential market segments, including packaged food, snacks, sweets, and beverages. However, some experts have expressed concerns about a potential competition law issue, although the exact nature of this concern was not specified.
Haldiram Snacks Food, owned by the Agarwal family, had considered partnering with private equity firms such as Blackstone, Alpha Wave, and Bain Capital, but has instead chosen to sell a minority stake to Temasek. The company is reportedly exploring further options for the sale of additional equity.
The investment from Temasek is expected to fuel Haldiram’s expansion in both domestic and international markets, and the company may also consider an initial public offering (IPO) next year. The National Company Law Tribunal has cleared the merger of two family-run businesses, Haldiram Snacks (Delhi) and Haldiram Foods International (Nagpur), which formed Haldiram Snacks Food. Regulatory approvals are currently pending.
Temasek’s investment in Haldiram Snacks Food is significant, and the deal may indicate the company’s focus on growing its presence in the food sector. The valuation of $10 billion is a testament to the company’s success and growth potential in the competitive packaged food market.