Temasek, a Singaporean investment firm, is seeking approval from the Competition Commission of India (CCI) to acquire a 10% stake in Haldiram, a popular Indian snacks brand. Temasek has proposed to acquire the stake through a public market transaction, which is expected to value Haldiram at around ₹5,000 crore.
Haldiram is a well-known brand in India, famous for its lottery-style snack packets containing a mix of flavored snacks, and its diversified product portfolio, which includes biscuits, chocolates, and breakfast cereals. The brand has been around since 1982 and has a strong presence across various channels, including offline and online.
Temasek’s proposed acquisition of a 10% stake in Haldiram is part of its growth strategy, which focuses on investing in Indian companies with a strong potential for growth and scalability. Temasek has been expanding its presence in India, having already invested in companies such as Airtel, Bharti Enterprises, and Indian Hotels.
The CCI is expected to review the proposed transaction to determine whether it will have an adverse impact on competition in the Indian market. The regulator’s approval is required under the Competition Act, 2002, as the proposed acquisition will result in Temasek holding a significant stake in Haldiram.
The move is likely to benefit both parties. Haldiram will gain access to Temasek’s expertise and network, which will help the company expand its reach and scale up its operations. Temasek, on the other hand, will gain a foothold in the Indian snacks market, which is expected to grow significantly in the coming years.
The proposed acquisition is also seen as a strategic play by Temasek, which is looking to diversify its portfolio and gain exposure to emerging Indian brands. Haldiram’s strong brand recognition and loyal customer base make it an attractive target for Temasek.
In conclusion, Temasek’s proposed acquisition of a 10% stake in Haldiram is a significant development in India’s food sector. The CCI’s approval will pave the way for Temasek to take a significant stake in the Indian snacks company, which is expected to boost Haldiram’s growth prospects and expand its reach into new markets.