Tata Consumer Products engages in discussions to acquire majority 51% stake in Haldiram’s
06 Sep 2023
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The consumer division of the Tata Group has begun negotiations to acquire a minimum of 51% ownership in the well-known Indian snack food manufacturer, Haldiram’s.
If the negotiations are successfully finalized, this agreement would position the Indian conglomerate in direct competition with Pepsi and billionaire Mukesh Ambani’s Reliance Retail.
Haldiram’s, a renowned name in Indian households, is reportedly in discussions with private equity firms, including Bain Capital, regarding the potential sale of a 10% stake, as per their statements.
Haldiram’s is an Indian multinational corporation specializing in sweets, snacks, and restaurants, with its headquarters situated in Noida. The company operates manufacturing facilities in diverse locations, including Nagpur, New Delhi, Gurgaon, Hooghly, Rudrapur, and Noida.
In addition to its manufacturing operations, Haldiram’s maintains an extensive network of retail stores and a variety of restaurants located in Pune, Nagpur, Raipur, Kolkata, Noida, and Delhi.
Haldiram’s, a family-run enterprise, can trace its roots to a small shop established in 1937 in Bikaner in what is today Rajasthan state1937. It The firm has gained widespread recognition for its crispy ‘bhujia’ snack, available for as low as Rs.10, rupees and widely distributed through local mom-and-pop stores as well as supermarkets.
Haldiram’s snacks are also available in international markets, including Singapore and the United States.
Additionally, tThe company operates approximately 150 restaurants, offering a diverse range of local cuisine, sweets, and Western dishes.
Tata Consumer Products is an Indian company specializing in fast-moving consumer goods and is a subsidiary of the Tata Group. While its registered office is situated in Kolkata, its corporate headquarters is based situated in Mumbai. The company holds the distinction of being is the world’s second-largest producer and distributor of tea, and it is also a significant player in the coffee industry.
Tata Consumer Products is the owner of the UK tea brand Tetley and a strategic partner of Starbucks in India.
According to some sources, Tata’s intention is to acquire more than 51%, but they have communicated to Haldiram’s that the latter’s ir proposed terms are considerably high.
Reports indicate that Haldiram’s is reported to have has set a valuation of $10 billion for the stake sought by Tata Consumer Products.
The prospective acquisition presents an enticing opportunity for Tata, as Tata Consumer is primarily known as a tea company, whereas Haldiram’s holds a significant presence in the consumer sector and commands a substantial market share.
Haldiram’s holds approximately a 13% share of India’s $6.2 billion savory snack market, as reported by Euromonitor International.
Whether this deal will happen or collapse will depend on the determination of both parties. Meanwhile, Haldiram’s CEO, Krishan Kumar Chutani, and Bain Capital declined to offer any comments.
Haldiram’s has also officially denied any reports of negotiations with Tata Consumer Products.
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