While rumors of Haldiram's stake sale have been circulating since the beginning of this year, there has been skepticism due to its status as India's top snack brand
Haldiram Stake Sale: The promoters of India's largest snack brand seem to have changed their investment plans. Haldiram has revised its initial plans to sell a majority stake and is considering offloading 10-15 per cent of the company instead. As per sources cited in a report by Mint, the company has already attracted the attention of top global investors.
Private equity giants Bain Capital, Blackstone and Temasek Holdings are currently evaluating the deal, the report mentioned.
While rumors of Haldiram's stake sale have been circulating since the beginning of this year, there has been skepticism due to its status as India's top snack brand. On top of it, the domestic snack market is set to nearly double in size, reaching Rs 95,521.8 crore by 2032.
“The family does not want to sell a controlling stake anymore. It is most likely now a minority deal......It is a well-run business that is profitable and generates a lot of cash. This (minority deal) makes more sense now," one of the sources cited in the report stated.
Besides domestic popularity, the company also has a strong presence on global shelves. With over 400 products including sweets, namkeen, confectionery, ready-to-eat meals, frozen foods and non-carbonated beverages, the company is present across 100 countries, including the US and European market. Sources cited in the report mentioned that the group's total revenue is estimated to exceed Rs 10,000 crore (around $1.2 billion) mark.
According to IMARC (International Market Analysis Research and Consulting Group), India's snack market is expected to witness a booming trajectory in the upcoming years.
The Indian snack market is expected to grow from Rs 42,694.9 crore in 2023 to Rs 95,521.8 crore by 2032, with a compounded annual growth rate of 9.08 per cent. While the growing young population has a lot to do with the surging figure, our changing lifestyles, rapid urbanisation and rising disposable incomes are also key factors resulting in this trend.
Some of the major competitors of Haldiram in the domestic market are Bikano, Balaji Wafers, Bikanervala Foods, ITC, Parle Products, PepsiCo, Prataap Snack and Britannia.