Despite steep valuations, local food brands top draw for big companies

Branded salty snacks in India, according to industry estimates, is pegged at around Rs 25,000 crore

Home-grown food companies seem to be the flavour of the season. Global food major Kellogg’s interest in desi brand Haldiram’s is just one of the many potential deals in the sector, say experts, as local firms look to cash out in a growing market. Snacks and dairy, in particular, are two areas where investor interest remains high as national and international food companies eye a bigger foothold in these segments despite steep valuations.

The asking price for companies in the snacks segment is three to five times annual sales, and in dairy, it is one to two times sales, depending on