Haldiram Snacks gets bid from Blackstone-led consortium, valuing business at over Rs 70,000 crore: Report

Haldiram Snacks gets big from Blackstone-led consortium, valuing business at over Rs 70,000 crore: Report snt

First Published May 14, 2024, 1:31 PM IST | Last Updated May 14, 2024, 1:48 PM IST

A consortium headed by Blackstone, the world's largest private equity fund, alongside Abu Dhabi Investment Authority (ADIA) and Singapore's GIC, has reportedly submitted a non-binding bid to acquire a controlling stake in Haldiram Snacks Food Pvt Ltd (HSFPL), the combined packaged snacks and foods venture of the Agarwal family's Delhi and Nagpur branches. Haldiram, boasting 87 years of legacy, holds a prominent position as India's leading provider of snack and convenience foods.

As per an Economic Times report, Blackstone and its partners are eyeing to acquire a majority stake of 74-76% in the company, with an estimated valuation ranging between $8-8.5 billion (Rs 66,400-70,500 crore). ADIA and GIC, both being limited partners or sponsors of Blackstone's global funds, are involved in this potential deal. If realized, this transaction would mark the largest private equity buyout in India's history.

In response to inquiries, Haldiram CEO KK Chutani stated to ET, "The company has no comments to offer."

KK Chutani, who previously served as the chief executive of Dabur International, assumed the role of CEO at Haldiram last May, marking the first instance of a professional taking charge.

The successful completion of the transaction hinges on the ongoing merger between the Nagpur and Delhi factions, as per a plan sanctioned by the National Company Law Tribunal (NCLT). This merger is expected to be finalized within the next three to four months.

The Haldiram family has recently undergone a significant restructuring, dividing their FMCG (packaged foods) and restaurant businesses into separate entities.

The newly established Haldiram Snacks Food Pvt Ltd (HSFPL) emerged from the merger of Haldiram Foods International Pvt Ltd (HFIPL), representing the Nagpur faction, and Haldiram Snacks Pvt Ltd (HSPL), representing the Delhi family.

Under this arrangement, the Delhi branch, headed by Manohar Agarwal and Madhu Sudan Agarwal, will retain a 55% ownership in HSFPL, while the Nagpur faction, led by Kamalkumar Shivkisan Agrawal, will hold the remaining 45%. Notably, the eastern faction of the Haldiram empire is not involved in this merger.

Haldiram's snack food business encompasses a diverse range of products, including snacks, namkeen, sweets, ready-to-eat and pre-mixed foods, cookies, non-carbonated ready-to-drink beverages, and pasta. The company boasts a global footprint, operating in over 100 countries, often through franchise agreements, with a presence in key markets such as the UK, US, and Japan.

Haldiram's has been diversifying its product portfolio by introducing sub-brands like Minute Khana, Cup Shup, and Cookie Heaven, and recently venturing into the chocolate market with the Cocobay brand. Furthermore, the company is actively expanding its presence in retail supermarkets and quick-commerce platforms, aiming to compete with established players such as Britannia in cookies and Mondelez and Amul in chocolates. In its growth strategy, Haldiram's has also acquired smaller brands like Babaji Namkeen, Akash Namkeen, and Atop Foods.

It's worth noting that the restaurant business, valued at Rs 1,800 crore, remains separate from the reported merger transaction.

Haldiram's boasts a rich heritage, dating back to 1937 when Ganga Bishan Aggarwal initiated the family-run sweets and namkeen shop in Bikaner, Rajasthan. While Haldiram's holds a dominant position in the snacks market, it faces competition from notable brands including PepsiCo's Lays and Kurkure, Balaji Snacks, Prataap Snacks' Yellow Diamond, Bikanervala, the recently listed Bikaji Foods, and ITC Foods' Bingo franchise.

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