Haldirams sells over 9% stake to Temasek, likely to sell another 6% to Alpha Wave

The agreement will see Temasek acquire an equity stake from the existing shareholders of Haldirams. “This transaction positions Haldirams to continue its ambitious expansion plans both in India and internationally, solidifying its presence in an increasingly competitive market,” PwC India, which acted as the financial advisor to the deal, said in a statement.

“We are thrilled to welcome Temasek as an investor and partner in Haldirams. We look forward to working with them to harness the value they bring from their experience in the consumer space to accelerate our growth and strengthen our ability to meet evolving consumer demands,” said a spokesperson of the Haldirams group.

“This transaction is not only the largest private equity consumer deal in India, but also a reflection of domestic businesses that continue to elevate India’s positioning on the global stage,” said Sanjeev Krishan, chairperson, PwC in India.

The stake sale could be a precursor to an initial public offering (IPO) by Haldirams, according to investment banking sources.

Global firms, including Blackstone and PespiCo, were eyeing a stake in unlisted Haldiram Snacks Foods. The valuation by Blackstone-led consortium for a 20 per cent and its demand for joint management control reportedly did not reportedly meet the expectations of the company which was expecting a total valuation of $12 billion.

Temasek’s India exposure is about $40 billion and it recently announced plans to invest up to $10 billion over the next three years.

Ganga Bhishen Agarwal was the founder of Haldirams. Agarwal family was operating three different entities in India with Delhi (run by Manohar and Madhusudan Agarwal), Nagpur (run by Kishan Agarwal), and Kolkata (Shiv Ratan Agarwal) families running separate businesses. Delhi and Nagpur families recently merged into a new entity named Haldiram Snacks Foods Private Ltd (HSFPL).

Shiv Ratan Agarwal’s Bikaji Foods came out with a successful IPO, with the issue being priced at Rs 300 per share that is now quoting at Rs 721 on the stock exchanges. “If Haldirams comes out with an IPO, global private equity firms will purchase stakes in unlisted firms like Haldirams before the IPO and later sell it during the IPO at a hefty premium. This has happened in multiple cases in the last two years,” said an investment banking source.

Started in Bikaner, Rajasthan, in 1937, Haldirams’ impressive product portfolio comprises over 400 items, including traditional namkeens, western snacks, Indian sweets, cookies, sherbets, pickles and more. Customer favourites like gulab jamun, Bikaneri bhujia, and papadam have contributed to the brand’s success.

Haldirams has its headquarters in Noida and boasts manufacturing plants across several locations, including Nagpur, New Delhi, Gurgaon, Hooghly district, Rudrapur and Noida. The company’s retail presence is significant, with its own chain stores and restaurants in major cities like Pune, Nagpur, Raipur, Kolkata, Noida, Mumbai and Delhi. Haldirams products have gained popularity worldwide, with exports to over 80 countries.