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The agreement follows months of negotiations, with Temasek considering Haldiram’s a “prized asset” that will focus on India’s consumer sector.
The deal has valued Haldiram’s at around Rs 90,000 crore.
Temasek, Singapore’s state investment company, has signed a deal to acquire nearly 9 per cent stake in Haldiram’s snacks business for about Rs 8,000 crore, according to reports. The deal has valued the entire company at around Rs 90,000 crore.
The agreement follows months of negotiations, with Temasek considering Haldiram’s a “prized asset” that will focus on India’s consumer sector, a source was quoted as saying by Moneycontrol.
The stake acquisition comes shortly after private equity firm Blackstone withdrew from the race to invest in Haldiram’s, citing concerns over valuation.
According to the Moneycontrol report, Haldiram Snacks is also mulling the sale of additional minority stake beyond 9% to other suitors beyond Temasek.
Earlier, news reports have indicated that Haldiram may look to sell upto 20% stake as part of the ongoing attempt to unlock value in the firm.
Founded in 1937 in Bikaner, Rajasthan, Haldiram’s has grown into a dominant player in India’s snacks market. According to Euromonitor International, the company holds nearly a 13% share of India’s $6.2 billion savory snacks market. Among its most iconic offerings is “bhujia,” a crispy fried snack made from flour, herbs, and spices, which is available in small mom-and-pop stores for as little as 10 rupees (12 US cents).
Temasek has been steadily increasing its footprint in India with investments in Manipal Hospitals and Devyani International, the operator of KFC and Pizza Hut. With this latest stake in Haldiram’s, the firm is now betting on the country’s booming packaged snacks industry.
Earlier, a demerger of the FMCG business of Haldiram Snacks Private Ltd (HSPL or Haldiram Delhi group) and Haldiram Foods International Pvt Ltd (HFIPL or Haldiram Nagpur group) was initiated to set up a newly-incorporated entity named Haldiram Snacks Foods Private Ltd (HSFPL), wherein existing shareholders of HSPL and HFIPL would acquire 56% and 44% shareholding respectively.
According to a report by Crisil Ratings, the Haldiram Group’s product profile is “diversified, comprising snacks, namkeen, sweets, ready to eat / pre-mix food, frozen food, biscuits, non-carbonated ready to drink beverages, pasta, etc. The group has diverse presence in India and exports to various countries outside India, including the United states of America and Europe”.
