Famous Indian sweet and snacks chain Haldiram’s is once again in the news spotlight, with Blackstone, along with Abu Dhabi Investment Authority (ADIA) and GIC of Singapore, seeking to acquire a majority stake in the Indian firm.
According to Economic Times, last week, a consortium led by Blackstone, the world’s largest private equity fund, submitted a non-binding bid to acquire a controlling stake in India’s largest snack and convenience foods company.
Blackstone, alongside its collaborators, aims to acquire a substantial 74-76 per cent stake in the company, valuing it between $8 and $8.5 billion (Rs 66,400-70,500 crore). ADIA and GIC participate as limited partners or sponsors in Blackstone’s global funds. Should the transaction proceed, it would mark the largest private equity buyout in India ever.
The food chain comprises the packaged snacks and foods businesses of both the Delhi and Nagpur factions of the Agarwal family. Haldiram Foods International is overseen by the Nagpur faction, whereas Haldiram Snacks is managed by the Delhi faction. Plans are underway to merge these two entities into a new venture, to be known as Haldiram Snacks Food.
According to an IANS report, the Nagpur-based faction recorded revenue of Rs3,622 crore in FY22, while Delhi-based Haldiram Snacks Private Limited generated sales worth Rs5,248 crore during the same fiscal year.
In September last year, Tata Group’s consumer unit was in talks to buy at least 51 per cent of Haldiram’s but the $10 billion valuation put the Tatas on the backfoot.
Tata Consumer Products, which owns UK tea company Tetley and has a partnership with Starbucks in India, found the $10 billion valuation “very high” given that Haldiram’s annual revenue is around $1.5 billion, a Reuters report said.
Reports indicate previous acquisition attempts of the food chain, notably by Venture Capitalist firms such as Bain Capital, Warburg Pincus and General Atlantic.
Founded in 1937 as a small sweets and savory retail store in Bikaner, the brand’s products are now distributed in over 80 countries worldwide.
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Is Haldiram’s going to foreign arms? Blackstone-led $8.5 bn bid for 76% indicates so
