 "Alpha Wave, two others eye 15% stake in Haldiram's at $9 bn valuation")
Alpha Wave Global, a US-based investment management firm, has reportedly made a binding offer exceeding $1 billion to acquire a minority stake in Haldiram's Snacks Food, India's largest snack and convenience food company. according to a report by The Economic Times.
This deal could rank among India's biggest private equity transactions, the report said.
Competing investor groups in the race
Alpha Wave, previously known as Falcon Edge, is now competing against two other investor consortiums. One group, led by Blackstone along with Singapore's GIC and the Abu Dhabi Investment Authority (ADIA), and another led by Bain Capital in partnership with Temasek, have also submitted firm bids. These bids aim to acquire a 15-20 per cent stake in Haldiram's, the report said.
The potential transaction values Haldiram's between Rs 75,000 crore and Rs 80,000 crore ($8.8 billion–$9.4 billion), reflecting the company’s strong financial performance and market position.
Haldiram’s strategic options
Haldiram’s founding promoters, the Agarwal family, initially explored selling a controlling interest in their 87-year-old business. However, they are now considering divesting a smaller minority stake in the combined operations of their Delhi and Nagpur factions. The company’s merger process, approved by the National Company Law Tribunal (NCLT) and greenlit by the Competition Commission of India (CCI) in April this year, is set to unify the two factions.
After the merger, the Delhi faction, led by Manohar and Madhu Sudan Agarwal, will hold a 56 per cent stake, while the Nagpur faction, headed by Kamalkumar Shivkisan Agrawal, will control the remaining 44 per cent.
IPO on the horizon
The Agarwal family is also debating the possibility of a public listing post-sale, anticipating a valuation of Rs 93,500 crore ($11 billion) through an IPO. Private equity bidders also view a potential IPO within 12-24 months as a key monetisation strategy, the report said.
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Alpha Wave’s diversification
Alpha Wave, known for its investments in Indian consumer technology firms like Swiggy, Dream11, and Lenskart, has recently diversified into non-tech businesses, including wellness brand VLCC. Its interest in Haldiram's marks another significant step into the consumer goods sector.
Healthy snacking challenges
Despite Haldiram's dominance in India's $6.2 billion savoury snacks market, traditional snack companies face growing competition from the "smart snacking" segment, which includes healthier options like fortified biscuits and Greek yogurt. NielsenIQ reports that smart snacks are growing 1.2 times faster than traditional snacks, driven by increasing health consciousness among Indian consumers, as mentioned in the report.
Long-running negotiations
Private equity firms like General Atlantic, TA Associates, and Warburg Pincus have previously engaged with Haldiram's for potential stakes, but negotiations often stalled due to fluctuating demands and indecision by the Agarwal family. Similar attempts by Tata Consumer Products and global giants like Kellogg’s and PepsiCo also fell through over valuation disputes.
The road ahead
While investor discussions continue to finalise terms, stakeholders are emphasising clear operational agreements and valuation metrics to navigate Haldiram's strategic path forward. This landmark deal, if concluded, could reshape India’s snack and convenience food industry, the report said.