Major foreign private equity firms like Blackstone, Bain Capital, and Singapore's Temasek seek up to 76% stake in the Indian food giant
Haldiram's, the iconic snack brand that originated as a humble sweet shop in Bikaner, Rajasthan, has been attracting significant attention from leading private equity firms including Blackstone, Bain Capital, and Singapore's Temasek. Despite its global presence, with products distributed in over seven million outlets worldwide and nearly Rs 9,000 crore in combined revenue, Haldiram's has refuted claims regarding the sale of the company's stake.
Amidst growing interest from private equity firms, the promoters of Haldiram's Snacks Food Pvt Ltd have shown hesitation in selling the company despite receiving non-binding offers. As previously reported by Business Standard, both US-based Blackstone and a consortium led by Bain Capital and Singapore's Temasek have independently proposed to acquire the renowned snack food company. A banking source disclosed that the valuation of $8.3 billion (Rs 69,138 crore) did not excite the promoter family. Haldiram's officials have firmly stated, "All this news about the promoters selling out is not true." Despite the promoter's reluctance, the keen interest from these major PE firms underscores Haldiram's robust market position and its potential for growth. The company operates about 150 restaurants internationally, including locations in Singapore and the United States, and is recognized for its extensive array of Indian snacks.
On May 14, it was reported that Blackstone, along with Abu Dhabi Investment Authority (ADIA) and GIC, planned to bid for a stake of up to 76 percent in Haldiram's Snacks Food Pvt Ltd. Blackstone, a top global private equity firm that manages over $1 trillion in assets, is known for its influential status in the investment realm. Meanwhile, ADIA has been investing worldwide since 1976 on behalf of the Government of Abu Dhabi, aiming to create long-term value. Bain Capital and Temasek, managing assets of approximately $185 billion and 403 billion Singapore dollars respectively, have also submitted a non-binding offer valuing Haldiram's between $8-8.5 billion (Rs 66,400-70,500 crore). This proposal marks the first joint venture between Bain and Temasek in India, with Bain having previously co-invested frequently with GIC. Temasek, along with ADIA and GIC, are limited partners in Bain's global funds. In November last year, Bain concluded its fifth pan-Asia private equity fund at $7.1 billion, exceeding its target by 40 percent. Bain had initially discussed a potential minority investment with the Agarwal family, culminating in factory visits and management meetings by the end of 2023, as the family completed a pan-India restructuring plan.
In September, Tata Consumer was reported to be in discussions to acquire a 51 percent stake in Haldiram's Snacks Food Pvt Ltd for $10 billion (Rs 83,300 crore), a valuation deemed too high considering Haldiram's annual revenue of about $1.5 billion. Tata Consumer Products has officially denied these negotiations through a regulatory filing: "The Company is not in negotiations as reported in the above-referred news article... We are not aware of any information that has not been announced to the Exchanges, which requires disclosures under Regulation 30 of the SEBI (LODR) Regulations, 2015."
Beginning with a small sweet shop in Bikaner, Haldiram's has evolved into a globally recognized brand, reshaping the image of traditional Indian snacks and sweets. Ganga Bishan Agarwal, known affectionately as Haldiram Ji, started in his father's bhujia business at the age of 12. Haldiram's unique approach to the traditional bhujia using moth flour instead of besan became an instant hit in 1919. By 1937, Haldiram's was established as a retail sweets and namkeen shop, and its distinctive taste and quality laid the groundwork for a future global enterprise. The company's expansion continued through generations, with significant growth in Kolkata and later New Delhi. Haldiram's products, such as bhujia, sev, and various sweets, have garnered immense trust and loyalty from consumers across India, achieving over $1 billion in sales by 2018.
Haldiram's markets a variety of products under different brand names, including Haldiram's Prabhuji, Bikanervala, Bhikharam Chandamal, Bikaji, and Bikano. The company maintains manufacturing facilities in several locations and operates its own chain of retail stores and restaurants. Haldiram's began its international journey in2000, extending its reach to over 80 countries. The company's robust distribution network ensures that its products are available in large supermarkets, standalone retail outlets, and its own branded stores. This extensive footprint not only strengthens Haldiram's position in the global market but also supports its reputation for quality and consistency.
While rumors of stake sales and discussions with major investment firms have circulated, Haldiram's remains firmly under the control of its founding family. The company's denial of these rumors and the assertion that no such negotiations are taking place highlights the family's intention to maintain their legacy and continue guiding the company's future.
The interest from prominent global investors underscores the strength and potential of Haldiram's as a leading player in the food industry, both in India and internationally. Whether or not any future deals will materialize, Haldiram's continues to be a significant case study in the successful globalization of a traditional, family-owned business.
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