 "Singapore’s sovereign investment firm Temasek has secured a deal to acquire nearly a 10 per cent stake in the snacks division of India’s Haldiram’s. Image courtesy: Haldiram's")
Singapore’s sovereign investment firm Temasek has reached a deal to acquire nearly a 10% stake in the snacks division of India’s Haldiram’s for about $1 billion.
The agreement follows months of negotiations, with Temasek identifying Haldiram’s as a key asset in its strategy to expand in India’s fast-growing consumer sector. The deal underscores increasing global investor interest in India’s food and beverage industry, particularly in the savoury snacks segment.
Competitive bidding and foreign investment
Temasek secured the stake despite competing bids, including an offer from US private equity giant Blackstone, which sought a 20 per cent stake but at a lower valuation. The sale is among the largest recent transactions in India’s fast-moving consumer goods (FMCG) sector and could encourage further foreign investment in the industry.
Investment bankers say Haldiram’s promoters have been considering an initial public offering (IPO) within the next year, seeking to capitalize on India’s strong stock market performance. If it moves forward, the IPO could enhance the company’s financial standing and market reach.
Haldiram’s market position
Haldiram Snacks Foods, the combined FMCG business of the Delhi and Nagpur branches of the Haldiram’s family, is a dominant player in India’s snack industry. The Haldiram brand operates under three family-run entities in Delhi, Nagpur, and Kolkata. However, the Delhi and Nagpur factions have merged their FMCG businesses— Haldiram Snacks and Haldiram Foods International—into a single company, Haldiram Snacks Foods Private Ltd (HSFPL).
According to market research firm Euromonitor International, Haldiram’s holds nearly a 13 per cent share of India’s $6.2 billion savoury snacks market.
With inputs from agencies