Temasek Acquires 10% Stake in Haldiram Snacks Food at $10 Billion Valuation
In what marks the largest transaction in India's packaged consumer goods sector, Singapore-based investment firm Temasek has signed a definitive agreement to acquire a 10% stake in Haldiram Snacks Food. The deal, finalized on Tuesday night, values the iconic Indian snack manufacturer at an impressive $10 billion.
Solo Investment by Temasek
According to executives familiar with the transaction, Temasek proceeded with the investment independently after its previous partner, Bain Capital, withdrew from the bidding process. While there are indications that Haldiram may eventually bring in additional investors such as Alpha Wave Global or Blackstone, currently only the agreement with Temasek has been formalized.
Temasek's decision to pursue the investment alone came after Bain Capital declined to negotiate beyond a valuation range of $8.8-9.4 billion (approximately Rs 75,000-80,000 crore), falling short of Haldiram's valuation expectations of $10-11 billion.
Haldiram's Market Position and Financial Performance
Haldiram Snacks Food has established itself as India's largest snack and convenience foods company. The company reported revenue of Rs 12,800 crore in fiscal year 2024, demonstrating its dominant position in the packaged food segment.
The company's extensive product portfolio includes:
- Over 500 types of snacks and namkeen
- Traditional Indian sweets
- Ready-to-eat and pre-mixed foods
- Non-carbonated ready-to-drink beverages
With operations spanning 100 countries including key markets such as the United Kingdom, United States, and the Middle East, Haldiram has successfully transformed from a regional Indian brand to a global food enterprise.
Competitive Bidding Process
The stake sale attracted significant interest from major investment firms. Three private equity groups had submitted binding offers for a 10-15% stake in Haldiram last year:
- A consortium led by Blackstone, along with the Abu Dhabi Investment Authority and GIC of Singapore
- The Temasek-Bain Capital combination (prior to Bain's withdrawal)
- Alpha Wave Global
Reports indicate that Blackstone's proposed conditions, which included joint management control and rights over key leadership appointments, were not acceptable to Haldiram's promoter family, ultimately affecting their position in the bidding process.
Strategic Corporate Developments
The investment comes at a significant juncture for Haldiram, which has been implementing important structural changes to streamline its operations:
- The merger of the Delhi and Nagpur business branches of the Haldiram group, approved by the National Company Law Tribunal (NCLT)
- Approval of the merger plan by the Competition Commission of India (CCI) in April 2024
- Appointment of a professional CEO in May 2023 – a first in the company's history
These developments were widely viewed as preparatory steps toward attracting strategic investors while modernizing the company's complex business operations. It's worth noting that the transaction does not include Haldiram's restaurant business, which is valued at approximately Rs 1,800 crore.
Market Growth and Future Potential
The investment underscores the significant growth potential in India's snack food market. According to market research firm IMARC Group, the Indian snacks market was valued at Rs 42,694.9 crore in 2023 and is projected to more than double to Rs 95,521.8 crore by 2032.
In recent years, Haldiram has strategically diversified beyond its traditional ethnic snacks portfolio to introduce sub-brands like Minute Khana, Cup Shup, Cookie Heaven, and Cocobay chocolates. These expansions position the company to compete directly with established players such as Britannia, Mondelez, and Amul across multiple food categories.
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