Haldiram Snacks' promoters revise stake sale plans, look to offload 10-15%

Earlier, the promoters of Haldiram's were exploring the possibility of selling a controlling 51 per cent stake, a move that would have valued the company between $8 billion and $10 billion

The promoters of Haldiram Snacks Food Pvt Ltd, one of India’s leading snack manufacturers, have revised their plans to sell a majority stake in the company. They are now looking to offload 10-15 per cent minority stake, according to a report by Mint. The company, which has attracted interest from top global investors, is now being evaluated by private equity firms Bain Capital, Blackstone, and Temasek Holdings.

Earlier reports indicated that Haldiram’s promoters were considering to sell a controlling 51 per cent stake, which would have valued the company at $8-10 billion. However, the latest decision indicates a shift towards selling a minority stake. This may be due to the company’s strong profitability and cash generation potential, the news report mentioned.

 

Global investors interested in Haldiram

Earlier this month, Bloomberg reported that Singapore-based Temasek Holdings was in preliminary discussions to acquire a minority stake, valuing Haldiram Snacks at around $11 billion. The report added that this investment could pave the way for an eventual initial public offering (IPO), allowing Haldiram to further expand its market presence.

Earlier this year, Bain Capital, Blackstone, and Temasek expressed interest in acquiring a majority stake in the company. At the time, the deal was seen as an opportunity for global investors to tap into India’s fast-growing snacks market, which is projected to double in size to Rs 95,521.8 crore by 2032.

Private equity firms appear to be comfortable even with a minority stake, as it still provides them a foothold in India's growing food and beverage market.

Merger and reorganisation of Haldiram

The latest stake sale discussions come after a reorganisation within the Haldiram group. Last year, the Nagpur and Delhi factions of the company merged, leading to the creation of Haldiram Snacks Food Pvt Ltd. The new entity is 56 per cent owned by Delhi’s Haldiram Snacks Pvt Ltd (HSPL) and 44 per cent by Nagpur’s Haldiram Foods International Pvt Ltd (HFIPL).

Both factions trace their roots back to Ganga Bhishen Agarwal, who founded Haldiram in 1937 as a small family-owned sweet shop. The two businesses had been operating independently for years before the merger. The Delhi operations were overseen by Manohar Agarwal and Madhu Sudan Agarwal, while the Nagpur operations were managed by Kamalkumar Shivkisan Agrawal.

Today, Haldiram has grown into a global business, offering more than 400 varieties of sweets, savoury snacks, confectionery, ready-to-eat and frozen foods, and beverages. The brand has expanded its reach to over 100 countries, including the United States and Europe, and operates 43 restaurants in and around Delhi. Its total revenue, including international operations, is estimated to exceed Rs 10,000 crore.