Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Singapore's sovereign investment firm, Temasek, has finalised a deal to acquire nearly a 10% stake in Haldiram's snacks division for approximately USD 1 billion. The acquisition comes after months of negotiations, with Temasek viewing Haldiram as a key asset in India's expanding consumer sector. The deal highlights growing global interest in India's food and beverage industry, especially the savoury snacks segment. While Blackstone had also bid for a 20% stake, its lower valuation resulted in Temasek securing the agreement. Industry experts suggest that Haldiram's promoters are considering an IPO in the coming year to leverage the country's robust stock market. The restructuring of Haldiram Snacks Foods Private Ltd (HSFPL) has further consolidated its market position, making it a highly attractive investment.
Temasek, the sovereign investment firm of Singapore, has reached an agreement to acquire nearly a 10% stake in the snacks division of India's Haldiram's for around USD 1 billion. This deal, which follows prolonged negotiations, underscores Temasek's strategic focus on India's rapidly growing consumer sector. Additionally, it reflects the increasing interest of global investors in the country's food and beverage industry, particularly in the savoury snacks market. Advertisement
While Temasek emerged as the successful bidder, American private equity giant Blackstone had also made an offer for a 20% stake but at a lower valuation. This transaction ranks among the largest recent deals in India's fast-moving consumer goods (FMCG) sector and is expected to encourage further foreign investments in the industry.
Market analysts indicate that Haldiram's promoters have been exploring the possibility of an initial public offering (IPO) within the next year. If this plan materialises, it could significantly enhance the company's financial standing and market influence, capitalising on India's buoyant stock market.
Haldiram Snacks Foods, the unified FMCG entity formed through the merger of the Delhi and Nagpur branches of Haldiram's family business, is a dominant player in India's snack industry. The Haldiram brand in India operates under three separate family-run entities based in Delhi, Nagpur, and Kolkata. However, the Delhi and Nagpur divisions have consolidated their FMCG operations under a single entity, Haldiram Snacks Foods Private Ltd (HSFPL), to strengthen their market position.
Market research firm Euromonitor International estimates that Haldiram holds a 13% share in India's USD 6.2 billion savoury snacks market. In addition to its packaged snacks, the company also runs a chain of restaurants, further expanding its footprint in the food industry. Its strong market presence has drawn considerable interest from global investors, with private equity firms such as Bain Capital and Blackstone previously vying for a stake in the unlisted company.
Financially, Haldiram Foods International recorded consolidated net sales of INR 4,551 crore (USD 550 million) in the financial year 2023-24 (FY24), marking a 10.9% rise from the previous year. The company's net profit increased to INR 597 crore (USD 72 million) in FY24, up from INR 436 crore (USD 53 million) in FY23.
In 2019, Haldiram's was reportedly in discussions with Kellogg's for a potential stake sale, but the deal did not materialise. Over the years, several private equity firms, including Bain Capital, had also expressed interest in investing in the company.
India's savory snacks market has witnessed substantial growth, driven by rising disposable incomes, urbanization, and changing consumer preferences. The increasing demand for both traditional Indian snacks and Western-style packaged foods has made companies like Haldiram's highly attractive to investors.
As part of the restructuring, existing shareholders of Haldiram Snacks and Haldiram Foods International now hold 56% and 44% of the merged entity, respectively. HSFPL will manage the Haldiram group's consumer product operations with Temasek's investment, setting it up for future development and expansion.
Temasek's acquisition of a stake in Haldiram signals a growing appetite among global investors for India's FMCG sector, particularly in the high-demand savory snacks category. The deal not only strengthens Temasek's portfolio in the country's consumer market but also enhances Haldiram's prospects for future expansion. This development is likely to pave the way for more foreign investments in the sector, highlighting India's appeal as a lucrative market for international investors.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
