New Delhi: Haldiram, the iconic Indian snacks and sweets brand, has decided to change its course of action when it comes to selling stakes in the company. While global giants like Bain Capital, Blackstone, and Temasek Holdings were earlier interested in acquiring a majority stake, the promoter family has now opted to sell only 10-15% of the company’s shares. This new direction comes as Haldiram continues to enjoy robust growth and profitability, positioning itself in the rapidly expanding Indian snacks market.
A report in the business daily Mint indicates that Haldiram is no longer considering a majority stake sale and has pivoted towards selling a minority stake. Despite being profitable and generating considerable cash flow, the family seems keen on retaining control, which has changed the earlier discussion of selling 51% of the company at an estimated valuation of $8-10 billion.
Haldiram’s Growth and Snacks Market Potential
Haldiram is in a comfortable financial position, benefiting from the booming Indian snacks market, which is expected to double to Rs 95,521.8 crore by 2032. This significant growth potential has caught the attention of global firms, eager to capitalize on the opportunity. The decision to sell a minority stake instead reflects confidence in the company’s future and allows the promoter family to maintain control while bringing in additional investment.
With over 400 types of food products and business spread across more than 100 countries, Haldiram has successfully carved out a global niche for itself. The recent merger of Haldiram’s Nagpur and Delhi units has also added further strength to the company’s operations. This merger was approved by the Competition Commission of India last year and has simplified the company’s structure. Currently, Haldiram Snacks Pvt Ltd holds 56% stake, while Haldiram Foods International Pvt Ltd (HFIPL) holds 44%.
Where Did Talks Fall Through?
Earlier this year in May, major private equity firms such as Bain Capital, Blackstone, and Temasek Holdings were in discussions to acquire a majority stake in Haldiram. However, these talks reportedly stalled due to differences in valuation expectations. Despite the lucrative opportunities, neither side could come to an agreement, putting the majority stake sale off the table. The company also considered an Initial Public Offering (IPO), but those plans didn’t materialize either.
Market Competition and Valuation
Haldiram, with a 21% market share in India’s snack food sector, faces competition from major players such as Balaji Wafers, Bikanerwala Foods, ITC, Parle Products, and PepsiCo, which holds 15% of the market. Additionally, there are about 3,000 smaller and regional players that control around 40% of the market share.
According to industry reports, Haldiram’s financial performance in the fiscal year 2022 was solid. Haldiram Foods International Private Limited reported revenue of Rs 3,622 crore, while Haldiram Snacks Private Limited generated Rs 5,248 crore in revenue. Based on these figures, Haldiram’s overall valuation stands at approximately Rs 83,000 crore.
The Road Ahead for Haldiram
As the Indian snacks market grows and international firms remain eager to invest, Haldiram seems to have positioned itself well to continue as a dominant player. With the promoter family’s decision to sell a minority stake and retain majority control, the brand continues to move forward with confidence, while also bringing in capital to fuel its future growth.
