Blackstone in discussion with the Agrawal family to buy stakes. If the deal is sealed it will likely be the biggest private equity buyout in India till date
Blackstone Inc is having close talks with the family members of 106-years old, Indian sweets and snacks brand, Haldiram for controlling stake in the latter's business. Blackstone is eying to buy stakes at a valuation of up to Rs 70,000 crore as per the moneycontrol's report.
Blackstone Inc is an American multinational private equity company. Blackstone along with consortium partners Abu Dhabi Investment Authority and Singapore's GIC are currently in discussions with the Agrawal family which runs the Haldiram business.
However, in the past the negotiations were discontinued due to disagreements regarding the valuation of the business. Reportedly, the talks have resumed between Haldiram's promoters and Blackstone, again in the past few weeks.
"There has been a lot of back and forth with the family members over the valuation of the business. Also, the family is not looking at giving away a 76 per cent controlling stake, which the private equity investors wanted, and want to retain a larger share of the business. Some family members would like to sell only a 51 per cent stake but the current discussions with Blackstone are likely to see a stake sale of closer to 74 per cent," a source in the report said.
Haldiram had its humble beginning in 1918, it started from a small sweet shop in Bikaner, today it is an international snack giant. There's hardly anyone in India who is unaware of the brand called Haldiram.
The brand has over the years expanded its products range. It's popularity isn't just limited to India but Haldiram's sweets and snacks have found its fans in foreign countries which has helped in expanding its market, globally. If the deal is sealed, it will be the biggest private equity buyout in India till date, the report said.