Haldiram’s announces 10% stake acquisition by Temasek for US$1B
INDIA – Haldiram’s, a manufacturer of snacks and sweets, has signed an agreement to sell 10% of its stake to Temasek, Singapore’s state investment company, for US$1 billion.
The acquisition marks one of the most significant deals in India’s fast-moving consumer goods sector, potentially signaling more foreign investment ahead.
With a reported US$37 billion exposure to India as of March 2024 and plans to invest an additional US$10 billion over the next three years, Temasek is diversifying beyond its high-profile stakes in Rebel Foods (where it led a US$210 million round in 2024, valuing it at US$1.4 billion).
Temasek’s stake purchase follows the withdrawal of private equity investor Blackstone from the race to acquire a minority stake in Haldiram’s, citing valuation concerns.
Blackstone, the world’s largest alternative asset manager, dropped plans to acquire a majority stake in Haldiram’s snacks business in India, opting for a 20% stake at a valuation of US$8 billion, which is still a sticking point.
There was a disconnect over valuation. Two sources familiar with the situation said Haldiram’s wanted to value the snacks business at US$12 billion, but Blackstone aimed to seal the deal at US$8 billion.
In May 2024, Reuters reported that a consortium led by Blackstone was eyeing a 75% stake in the business and had made a nonbinding bid. However, those talks did not materialise as Haldiram’smm was no longer keen to sell a big stake.
“Blackstone is keen to close the transaction as a lot of effort has gone into it,” said one source with direct knowledge of the issue.
Haldiram’s, which Euromonitor International estimates has a share of almost 13% of India’s US$6.2 billion market for savoury snacks, has more than 150 restaurants; hence, foreign investors are salivating its popular snacks business.
Other companies that scrambled for a minority stake in the Indian business include Bain Capital, Singapore state investor Temasek and Abu Dhabi Investment Authority (ADIA). However, they gave no details of their plans.
Reuters also reported that India’s Tata Group was in talks with Haldiram’s to acquire a majority stake in the snacks and restaurants business when it sought a valuation of US$10 billion. Still, those talks ended, and no Tata deal was in the works.
The company is present in 100 countries, including the US and European markets. Sources cited in the report mentioned that the group’s total revenue is estimated to exceed Rs 10,000 crore (around US$1.2 billion).
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