Billion-dollar potential: Haldiram's snack empire attracts global interest

The Haldiram brand which is today a household name had a rather humble beginning in the streets of Bikaner, which was started by Ganga Bishan Agarwal, fondly called Haldiram

Global private equity investors have been eager for a piece of Haldiram’s for a while, and finally, the family has taken the first step towards parting with a portion of the company, which commands a dominant share in the Indian savouries market.

 

The Agrwal family, which is at the helm of the bhujia empire, has been in talks to raise funds for some time. From reports of the company selling a majority stake to now signing a term sheet to sell a fifth of the company at a valuation of $10 billion, the company has been in discussions with investors and fast-moving consumer goods (FMCG) firms to find a suitable partner for over a year. News reports in recent years have also mentioned a possible stake sale, with companies like PepsiCo and Kellogg’s in the fray to grab a bite of the Indian savoury snack producer.

 

In September 2023, Tata Consumer Products was also in talks to buy a 51 per cent stake in Haldiram’s but was not comfortable with the $10 billion (Rs 83,300 crore) valuation sought by the promoters, Reuters reported. According to the news agency, Tata Consumer was in talks to sell an additional 10 per cent stake to Bain last year, prior to a potential listing in the stock markets, but the deal fell through.

 

The Haldiram’s brand, now a household name, had a humble beginning on the streets of Bikaner in 1937, founded by Ganga Bishan Agrawal, fondly called Haldiram. 

 

Later, the business split into three different entities: one in Delhi which was started by Manoharlal (Haldiram's gramdson), one in Nagpur by Shiv Kishan (Haldiram's grandson), and one in Kolkata, all under the founder’s name, Haldiram’s.

 

The Delhi and Nagpur families, however, came together and merged the FMCG business of Haldiram Foods International (HFIPL) and Haldiram Snacks (HSPL), part of the Haldiram’s Delhi group, into a newly incorporated entity named Haldiram Snacks Foods (HSFPL). The existing shareholders of HSPL and HFIPL would acquire 56 per cent and 44 per cent shareholding, respectively, in the merged entity. Upon completion of the transaction, HSFPL would take over the consumer products operations of the entire Haldiram group.

 

In November last year, Kolkata-based Haldiram Bhujiawala sold a minority stake to Bharat Value Fund, which invested Rs 235 crore in the company for a minority stake.

 

Haldiram Bhujiawala retails its products under the brand Prabhuji.

 

“The Delhi and Kolkata families have been warring in court since 1991 to establish who has the actual right to use the Haldiram Bhujiawala and Haldiram’s brand in Delhi. While the legal battle only began in the early 1990s, the seeds of enmity were sown a generation before,” notes a book on the family. However, in 1999, the high court gave a breather to the Delhi brothers. The brand-name tussle continues between the two businesses.

 

According to Bikaji Foods, a rival in the ethnic food space, the ethnic namkeen and snacks, ethnic bhujia, and western snacks market in 2021-22 was valued at Rs 10,800 crore and is expected to reach Rs 19,500 crore by 2025-26.