Haldiram promoters now offering smaller shares to investors

Promoters of Haldiram Snacks Food Pvt Ltd. are now looking to sell a 10-15% stake, three people familiar with the matter said, adding to an initial plan to sell a majority stake in India’s largest snack maker, a plan that has attracted the attention of top global investors. interest. development.

Private equity firms Bain Capital, Blackstone Group and Temasek Holdings are evaluating the deal, the people said, speaking on condition of anonymity.

“The family doesn’t want to sell any more controlling stake. It’s likely to be a minority deal now,” said one of the people cited above. “This is a well-run business, profitable and generating a lot of cash. This (minority deal) makes more sense now.”

Mint It was first reported in May that Bain, Blackstone and Temasek had expressed interest in acquiring a controlling stake in Haldiram, the parent company of eponymous snack and savory brand Haldiram’s. At the time, the companies were considering acquiring a 51% stake at a valuation of $8-10 billion.

Global consultancy PwC India is advising the families on the deal.

chasing a piece

Investors are seeking a piece of India’s growing snack market, which is expected to double in size. $It will reach Rs 95,521.8 crore by 2032.

“The companies have accessed the company’s data room and due diligence is currently underway,” a second person said.

We emailed inquiries to spokespersons for Haldiram Snacks Food, Bain Capital and Blackstone but received no response. A Temasek spokesman declined to comment.

Blackstone had previously sought to partner with GIC and the Abu Dhabi Investment Authority (ADIA) to gain a controlling stake. At the same time, Bain Capital also hopes to work with some of its limited partners or investors in its funds, According to the Economic Times, bids for large checks were made.

“Private equity firms are also more willing to accept smaller checks but there is an opportunity to play a role in the growing F&B market in India through this company,” said the third person quoted above. “Ultimately, the idea is to list Such an iconic brand in the short term.”

The deal follows a merger initiated by the Nagpur and Delhi factions last year. As part of the restructuring, the group demerged the FMCG business of Delhi-based Haldiram Snacks Pvt Ltd (HSPL) and Nagpur-based Haldiram Foods International Pvt Ltd (HFIPL) into a newly formed entity called Haldiram Snacks Foods Pvt Ltd . HSPL holds 56% stake and HFIPL holds 44% stake.

The Delhi operations are mainly run by Manohar Agarwal and Madhu Sultan Agarwal, while the Nagpur operations are led by Kamalkumar Shivkisan Agrawal, the grandson of Haldiram founder Ganga Bhishen Agarwal, who founded the company in 1937.

Expand business

Haldiram started as a small family-run sweet shop and today sells more than 400 items such as sweets, namkeen, sweets, ready and frozen meals, non-carbonated beverages and pasta in 100 countries, including the US and European countries.

The group’s total revenue, including overseas operations, is expected to exceed $100 billion rupees or $1.2 billion, the person cited above said.

In the Indian snacks and savory market, Haldiram’s competitors include Conagra Brands, Balaji Wafers, Bikanervala Foods, ITC, Parle Products, PepsiCo, Prataap Snacks, TTK Foods (TTK Healthcare) and Urban Platter, among others.

According to a January report from research firm IMARC Group, the market is expected to be larger than $42,694.9 billion rupees in 2023 $It will reach 955.218 billion rupees by 2032, with a compound annual growth rate of 9.08% during the period. This is driven by increasing urbanization, rising disposable income and changing lifestyles by people adopting ready-to-eat foods, the report said.