Haldiram Snacks' promoters revise stake sale plans, eye 10-15% offload

Instead of selling a majority stake as initially planned, they are now looking to offload a 10-15 percent minority stake, according to a report by Mint.

Several prominent global investors have shown interest in the company, with private equity firms such as Bain Capital, Blackstone, and Temasek Holdings currently evaluating the opportunity.

Earlier, reports suggested that Haldiram’s promoters were considering the sale of a controlling 51 percent stake, which would have valued the company at $8-10 billion.

However, the revised decision to sell a minority stake may reflect confidence in the company’s strong profitability and cash generation potential, as noted in the report.

This month, Bloomberg reported that Singapore-based Temasek Holdings was in initial talks to acquire a minority stake, which would value Haldiram Snacks at approximately $11 billion.

The investment could potentially pave the way for an eventual initial public offering (IPO), enabling the company to further expand its market presence.

Earlier this year, Bain Capital, Blackstone, and Temasek had also expressed interest in acquiring a majority stake in the company.

At the time, the deal was seen as a way for global investors to capitalize on India’s rapidly growing snacks market, which is projected to double to Rs 95,521.8 crore by 2032.

Private equity firms seem comfortable with the idea of a minority stake, as it still provides access to India’s expanding food and beverage sector.

The discussions on the stake sale follow a reorganization within the Haldiram group.

Last year, the Delhi and Nagpur factions of the business merged, resulting in the creation of Haldiram Snacks Food Pvt Ltd.

The new entity is owned 56 percent by Delhi’s Haldiram Snacks Pvt Ltd (HSPL) and 44 percent by Nagpur’s Haldiram Foods International Pvt Ltd (HFIPL).

Both divisions trace their origins to Ganga Bhishen Agarwal, who founded Haldiram in 1937 as a small family-run sweet shop.

For years, the two businesses operated independently, with Delhi overseen by Manohar Agarwal and Madhu Sudan Agarwal, and Nagpur managed by Kamalkumar Shivkisan Agrawal.

Haldiram has now evolved into a global brand, offering over 400 varieties of products, including sweets, snacks, frozen foods, and beverages.

The company has expanded its footprint to more than 100 countries, including the United States and Europe, and operates 43 restaurants in and around Delhi.

Haldiram’s total revenue, including its international operations, is estimated to exceed Rs 10,000 crore.