In a significant development in the Indian snack industry, global private equity firm Blackstone is reportedly preparing a bid of Rs 40,000 crore to acquire a 51% stake in Haldiram’s, the iconic Indian snack maker and fast-food chain. The move, if successful, would mark one of the largest private equity buyouts in India.
Blackstone is part of a consortium that includes Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC. The consortium has submitted a non-binding bid to acquire a majority stake in Haldiram Snacks Food Pvt Ltd (HSFPL), the combined packaged snacks and foods business of the Delhi and Nagpur factions of the Agarwal family.
The completion of the deal is contingent on the successful merger between the Nagpur and Delhi factions, as per a plan approved by the National Company Law Tribunal (NCLT). The merger will result in the creation of a new entity, Haldiram Snacks Food Pvt Ltd (HSFPL), which will be owned 55% by the Delhi faction and 45% by the Nagpur faction.
Haldiram’s, known for its wide range of products including snacks, namkeen, sweets, ready-to-eat and pre-mixed food, cookies, non-carbonated ready-to-drink beverages, and pasta, has a significant presence in the Indian market. The company faces competition from other major players such as PepsiCo’s Lays and Kurkure, Balaji Snacks, Prataap Snacks’ Yellow Diamond, Bikanervala, the recently listed Bikaji Foods, and ITC Foods’ Bingo franchise.
The potential acquisition by Blackstone and its partners could significantly boost Haldiram’s growth trajectory, enabling the company to expand its product portfolio, enhance its distribution network, and strengthen its market position. The deal could also pave the way for Haldiram’s to explore new markets and increase its global footprint.
However, the deal is not without challenges. The family-run business has a complex ownership structure, with different factions holding varying stakes in the company. Moreover, the snack food industry is highly competitive, with numerous players vying for market share.
As the Indian snack industry continues to grow, driven by changing consumer preferences and increasing disposable incomes, the potential acquisition of Haldiram’s by Blackstone could be a game changer. It remains to be seen whether the deal will go through and how it will impact the competitive landscape of the Indian snack industry.