A group led by
Blackstone
, the biggest private equity fund globally, together with Abu Dhabi Investment Authority (ADIA) and
GIC
of Singapore, made a non-binding offer recently to purchase a majority stake in
Haldiram Snacks Food Pvt Ltd
(HSFPL), the joint packaged snacks and foods business of the Agarwal family’s Delhi and Nagpur branches, according to informed sources.
Haldiram, at 87 years old, stands as India’s foremost snack and convenience foods enterprise.
According to an ET report, Blackstone and its partners are eager to acquire 74-76% of the company, valuing the business at $8-8.5 billion (Rs 66,400-70,500 crore). ADIA and GIC are both limited partners or sponsors of Blackstone’s global funds. Should the deal materialize, it would mark the most significant private equity buyout in India to date.
When asked for comment, Haldiram CEO KK Chutani told ET, “The company has no comments to offer.”
Last year in May, Chutani, previously the chief executive of Dabur International, was brought in as Haldiram’s CEO, marking the first time a professional has taken the helm.
About Haldiram’s
The completion of any transaction hinges on the successful merger currently underway between the Nagpur and Delhi factions, as part of a plan approved by the National Company Law Tribunal (NCLT). This merger is anticipated to conclude within the next three to four months.
The Haldiram family has undergone a significant restructuring, with the Nagpur and Delhi factions splitting their FMCG (packaged foods) and restaurant businesses into separate entities.
The newly formed
Haldiram Snacks
Food Pvt Ltd (HSFPL) is the result of a merger between Haldiram Foods International Pvt Ltd (HFIPL), led by the Nagpur faction, and Haldiram Snacks Pvt Ltd (HSPL), led by the Delhi family.
The Delhi side of the family, represented by Manohar Agarwal and Madhu Sudan Agarwal, will hold a 55% stake in HSFPL, while the Nagpur faction, led by Kamalkumar Shivkisan Agrawal, will own the remaining 45%. The eastern faction of the Haldiram empire is not involved in this merger.
The snack food business of Haldiram’s encompasses the production and distribution of a wide range of products, including snacks, namkeen, sweets, ready to eat and pre-mixed food, cookies, non-carbonated ready-to-drink beverages and pasta. The company has a global presence, operating in 100 countries, often through franchisees, including in the UK, US, and Japan.
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Haldiram’s has expanded its portfolio by introducing sub-brands such as Minute Khana, Cup Shup, and Cookie Heaven, and has recently entered the chocolate market with the Cocobay brand. The company is also focusing on expanding its presence in retail supermarkets and quick-commerce platforms, aiming to compete with established players like Britannia in cookies and Mondelez and Amul in chocolates. Additionally, Haldiram’s has acquired smaller brands such as Babaji Namkeen, Akash Namkeen, and Atop Foods.
The restaurant business, valued at Rs 1,800 crore, is not included in the merger transaction.
Haldiram’s has a rich history, dating back to 1937 when Ganga Bishan Aggarwal started the business as a family-run sweets and namkeen shop in Bikaner, Rajasthan. While Haldiram’s is a dominant player in the snacks market, it faces competition from other notable brands such as PepsiCo’s Lays and Kurkure, Balaji Snacks, Prataap Snacks’ Yellow Diamond, Bikanervala, the recently listed Bikaji Foods, and ITC Foods’ Bingo franchise.
