Temasek has acquired a 10% stake in Haldiram’s snacks division for $1 billion, marking one of India’s largest FMCG deals. This move highlights global interest in India’s thriving food sector. Temasek outbid Blackstone to secure the deal, while Haldiram’s considers an IPO to capitalize on India’s booming markets. Holding 13% of India’s $6.2 billion savory snacks market, Haldiram’s saw FY24 sales grow to $550 million. The partnership solidifies Haldiram’s industry dominance and global expansion potential.
Singapore-based sovereign investment firm Temasek has finalized a deal to acquire nearly a 10% stake in the snacks division of India's Haldiram's for approximately $1 billion, as reported by Reuters on Wednesday.
This landmark agreement comes after extensive negotiations, with Temasek identifying Haldiram’s as a prime opportunity to strengthen its focus on India's booming consumer market. The investment underscores the growing interest of global players in India's food and beverage industry, particularly in the savory snacks segment.
Fierce Competition for Haldiram's Stake
Temasek emerged victorious in the bidding process, overcoming competition from major players such as U.S. private equity giant Blackstone. Blackstone had reportedly offered to acquire a 20% stake but at a lower valuation. This transaction stands as one of the largest in recent years within India’s fast-moving consumer goods (FMCG) sector, potentially setting the stage for increased foreign investments in the industry.
Reports suggest that Haldiram’s promoters are exploring the possibility of launching an initial public offering (IPO) within the next year. With India's stock markets showing robust performance, an IPO could further boost Haldiram's financial standing and expand its market presence.
Haldiram's: A Dominant Player in India's Snack Market
Haldiram Snacks Foods, the combined FMCG business of the Delhi and Nagpur branches of the Haldiram family, is a key player in India's snack market. The Haldiram brand operates through three family-run entities based in Delhi, Nagpur, and Kolkata. However, the businesses in Delhi and Nagpur have merged their FMCG operations—Haldiram Snacks and Haldiram Foods International—into a single entity called Haldiram Snacks Foods Private Ltd (HSFPL).
According to Euromonitor International, Haldiram holds an impressive 13% share of India’s $6.2 billion savory snacks market. Beyond packaged snacks, the company also operates a chain of restaurants, further solidifying its presence in the Indian food industry.
Haldiram’s strong market position has drawn considerable attention from global investors. In addition to Temasek, private equity firms such as Bain Capital and Blackstone had previously shown interest in acquiring stakes in the company, as reported by Business Standard.
Impressive Financial Growth
Haldiram Foods International achieved consolidated net sales of Rs 4,551 crore ($550 million) in the financial year 2023-24 (FY24), reflecting a 10.9% growth compared to the previous year. Its net profit also rose significantly, increasing from Rs 436 crore ($53 million) in FY23 to Rs 597 crore ($72 million) in FY24.
Under the recent restructuring, existing shareholders of Haldiram Snacks and Haldiram Foods International now hold 56% and 44% stakes in the merged entity, respectively. Following Temasek’s investment, HSFPL will oversee consumer product operations for the entire Haldiram group.
This partnership with Temasek not only reinforces Haldiram’s position as a leader in India's snack industry but also signals a bright future for the company as it continues to expand its reach and influence in the global market.
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