Blackstone Inc., Temasek Holdings (Private) Limited, and Bain Capital, LP are considering acquiring a majority stake in Haldiram Snacks Food Pvt. Ltd. (HSFPL) according to the reports. In this Potential Acquisition, the investors aim to purchase at least 51% ownership in the renowned sweets and savories producer at a valuation ranging between $8 to $10 billion.
Ongoing Negotiations and Due Diligence
Negotiations for the deal are in progress, with the funds conducting thorough due diligence. This transaction, potentially one of the largest private equity deals in India’s consumer sector, reflects the growing maturity and depth of the Indian market. Haldiram’s provides a variety of products under well-known brands like Haldiram’s, , Haldiram’s Prabhuji, Bhikharam Chandamal, Bikaji, and Bikano, Haldiram’s offers a diverse range of products.
Merger and Restructuring
Following the merger of Haldiram’s Nagpur and Delhi divisions, which received approval from the Competition Commission of India last year, a restructuring took place. This involved the demerger of the fast-moving consumer goods (FMCG) businesses of HSPL and Haldiram Foods International Pvt. Ltd. (HFIPL), a part of the Haldiram Nagpur group, into a newly formed entity named Haldiram Snacks Food Pvt. Ltd. (HSFPL). Existing shareholders of HSPL and HFIPL now hold 56% and 44% ownership respectively in the new company.
Understanding: Mergers and Acquisitions
Market Overview and Competitor Analysis
According to IMARC Group, India’s snacks market reached Rs 42,694 crore in 2023 and is forecasted to hit Rs 95,521 crore by 2032. Competing with brands like Balaji Wafers, Bikanervala Foods, ITC, Parle Products, and PepsiCo, Haldiram commands a 21% market share, while PepsiCo holds 15%. The market is fragmented, with 40% controlled by approximately 3,000 small and regional players. Haldiram’s revenue in 2022 stood at Rs 8,870 crore, with an estimated valuation of Rs 83,000 crore.
Conclusion: In conclusion, if closed, it will be one of India’s biggest-ever consumer deals. This potential acquisition of a majority stake in Haldiram Snacks Food Pvt. Ltd. by the three major PE funds represents a significant move in India’s consumer sector. With negotiations underway and a valuation ranging between $8 to $10 billion, this deal underscores the robust growth potential and attractiveness of Haldiram’s market position and how the Indian market is maturing.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
