Haldiram’s Gets a Global Boost as Temasek Buys 10% for ₹8,500 Crore

In a move that marks one of the biggest private equity (PE) transactions in India’s food and snacks industry, Singapore government’s private equity arm Temasek has agreed to buy a 10% stake in Haldiram Snacks Food Pvt. Ltd. — the parent company of India’s iconic snacks brand Haldiram’s. The deal, worth ₹8,500 crore, puts the total value of Haldiram’s business at a staggering ₹85,000 crore (about $10 billion), according to people familiar with the matter.

Source: Mint 

The agreement with Temasek is more than just a financial transaction; it’s a significant development that reflects the growing global interest in India’s booming consumer market, especially the packaged foods and snacks sector where Haldiram’s is a dominant player.

A Long Wait, But a Big Win

This investment comes after over a year of intense discussions between Haldiram’s and several potential investors. According to people aware of the deal, the family behind Haldiram’s may also sell an additional 5% stake to other suitors like Blackstone or Alphawave Global. These talks are reportedly happening at similar terms to Temasek’s offer, but nothing has been finalized yet. 

The agreement with Temasek has been signed, and talks are ongoing with Blackstone and Alphawave. If successful, these additional stake sales could further consolidate Haldiram’s position as one of India’s most valuable and sought-after consumer brands.

Source: Mint 

Market size of savory snacks in India

Before we get into more details of the deal, let’s take a quick look at India’s savory snacks market — a space that’s growing fast. In FY22, the market was valued at over ₹750 billion, and it’s expected to cross ₹1 trillion by 2026. What’s more, western-style snacks hold the biggest share in the organized savory snacks segment in India.

A Rare $10 Billion Valuation in the Indian Snack Market

To understand the size of this deal, a $10 billion value for an Indian snack brand is unheard of. It shows how big Haldiram’s has become and how much potential global investors see in India’s growing packaged food market.

For Temasek, writing a cheque of this size signals deep confidence in both Haldiram’s brand power and India’s consumer story. It is also an indication of how attractive India’s homegrown businesses have become for global private equity players looking for growth opportunities in emerging markets.

Interestingly, Haldiram’s controls over 40% of India’s snacks and savory market, making it a leader by a huge margin. Its annual revenue stands around ₹14,000 crore, and its EBITDA (earnings before interest, taxes, depreciation, and amortization) margins are reportedly between 20-21% for FY24 — a sign of strong profitability in a competitive industry.

Source: Mint 

A Family Business Comes Together

This major stake sale comes on the heels of a crucial family business reorganization. Last year, the two major branches of the Haldiram family — the Delhi and Nagpur groups — merged their businesses to create a unified entity: Haldiram Snacks Food Pvt. Ltd. (HSFPL).

Before this merger, the Delhi unit, Haldiram Snacks Pvt. Ltd. (HSPL), and the Nagpur unit, Haldiram Foods International Pvt. Ltd. (HFIPL), operated somewhat independently, often leading to confusion and internal competition.

Under the new arrangement, HSPL shareholders now hold 56% in the new company, while HFIPL shareholders own 44%.

The Delhi business was mainly led by Manohar Agarwal and Madhu Sudan Agarwal, while the Nagpur business was run by Kamalkumar Shivkisan Agrawal, a grandson of the founder Ganga Bhishen Agarwal, who first started Haldiram’s as a small sweet shop in Bikaner in 1937.

This consolidation streamlined operations and opened doors for major investors such as Temasek.

Source: Mint 

From a Small Sweet Shop to a Global Brand

What started as a modest sweet shop almost nine decades ago has transformed into a global snack empire. Today, Haldiram’s boasts a portfolio of over 400 products, ranging from namkeens, sweets, and ready-to-eat meals to frozen foods, biscuits, beverages, and pasta.

The brand’s reach extends far beyond Indian shores. Haldiram’s exports to more than 100 countries, including major markets like the United States and Europe.

Despite the increasing competition from global giants like PepsiCo and Indian brands like Balaji Wafers, Bikanervala, ITC, Parle Products, and Prataap Snacks, Haldiram’s continues to dominate thanks to its deep market penetration, strong distribution network, and unmatched brand loyalty.

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An Eye on the Stock Market

Interestingly, there are also plans to take Haldiram’s public within the next 24 to 36 months, according to people close to the development. This potential IPO would not only provide an exit route for private equity investors like Temasek but could also turn Haldiram’s into one of India’s most valuable publicly traded consumer companies.

Though nothing official has been announced yet, a listing of this magnitude would mark a significant moment for Indian family-run businesses entering global capital markets.

Why Everyone Wants a Bite of Haldiram’s

Investors’ growing interest in Haldiram’s is easy to understand when one looks at the numbers and the broader market trends:

1. Strong Market Position: Controlling over 40% market share in India’s organized savory snacks market is no small feat. This leadership provides a strong base for further growth.
   
2. Steady Revenue and Profitability: With ₹14,000 crore in revenue and 20-21% EBITDA margins, Haldiram’s is not just big, but also highly profitable — a rare combination in India’s snacks industry.
   
3. Consistent Growth: The company has been growing at a compounded annual growth rate (CAGR) of 16-17%, demonstrating its ability to scale up consistently.
   
4. Strong Brand Recall: In India, Haldiram’s is almost a household name. Whether it’s packaged snacks on supermarket shelves or quick bites at Haldiram’s outlets, the brand connects deeply with consumers.
   
5. Global Potential: As Indian cuisine gains popularity worldwide, brands like Haldiram’s are well-positioned to ride this wave in international markets.
   

A Sign of Maturing Indian Consumer Market

Deals like this highlight how India’s consumer market is maturing and gaining popularity among global investors. The growing middle class, increasing urbanization, and a shift toward branded packaged food are trends that are here to stay.

It’s not just about snacks. India’s food and beverages sector is set to see major transformations in the coming years, with global funds lining up to back strong, homegrown brands.

The Road Ahead for Haldiram’s

While Temasek’s entry brings in capital and global expertise, the company still faces challenges ahead.

• Keeping up with changing consumer tastes, especially with the health and wellness trend picking up pace.
• Managing competition from both established brands and emerging players.
• Navigating regulatory hurdles and supply chain complexities, especially when expanding internationally.
• And, of course, successfully executing a public listing when the time comes.

Final Word

Temasek’s high-profile investment in Haldiram’s is not just about snacks — it’s a story of a homegrown brand that has stood the test of time, evolving from a small sweet shop to a ₹85,000 crore giant.

As the deal unfolds and possibly opens doors to other investors, Haldiram’s journey could become a defining chapter in India’s consumer brand success stories — a reflection of how traditional family businesses can adapt, modernize, and scale with the right partnerships.

If the IPO comes through in the next few years, Haldiram’s may very well become a brand that not only fills snack shelves across the world but also captures the imagination of investors on Dalal Street.

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