Promoters reluctant to sell Haldiram Snacks despite offers by PEs

Not enthused by reported valuation of Rs 69,138 crore

Promoters are reluctant to sell Haldiram Snacks Foods even as private equity (PE) firms have made non-binding offers to buy the food company.

Top Haldiram officials say the promoters have not sought any offers from the PE players and they are not selling out. “All this news about the promoters selling out is not true,” said a source from Haldiram, asking not to be quoted.
 

According to a source in the PE industry, US-based Blackstone and a consortium led by Bain Capital and Singapore’s Temasek have separately made non-binding offers to buy Haldiram Snacks. But the promoter family is not enthused by the reported valuation of $8.3 billion (Rs 69,138 crore) for the company, said a banking source.

 

Blackstone and Temasek declined to comment. Haldiram and Bain did not reply to emails seeking comments.
 

In September, Tata Consumer was also in talks to buy a 51 per cent stake in Haldiram but was not comfortable with the $10 billion (Rs 83,300 crore) valuation sought by the promoters, Reuters had reported. According to the news agency, it was in talks to sell an additional 10 per cent stake to Bain last year too before its potential listing in the stock markets. But the deal fell through.
 

Last year, the two family factions of Haldiram from New Delhi and Nagpur had decided to merge operations. The third family faction from Kolkata is not part of the new merged entity.
 

The Haldiram family’s transaction involves the demerger of the fast-moving consumer goods (FMCG) business of Haldiram Snacks and Haldiram Foods International (HFIPL; part of the Haldiram Nagpur group) into a newly incorporated entity called Haldiram Snacks Foods (HSFPL), wherein existing shareholders of HSPL and HFIPL would acquire a 56 per cent and 44 per cent stake, respectively. Post completion of the transaction, HSFPL would undertake the FMCG operations of the entire Haldiram group.
 

In FY23, Haldiram Snacks reported revenue of Rs 6,377 crore against Rs 5,195 crore in FY22 on a standalone basis, according to a statement by CRISIL Ratings in February this year. It also said its profit after tax was up 74 per cent to Rs 593 crore in FY 2023.

In the Rs 19,300 crore ethnic savoury and western snacks market, Haldiram (Delhi and Nagpur) lead with a 36 per cent market share, according to a report by Frost & Sullivan. The segment is witnessing increasing competition from multinationals like Pepsi and Indian companies.