India’s Largest Consumer Deal in History
India is about to witness one of the biggest consumer deals in its history very soon. A mighty Singapore-based fund is in talks to buy a 10% stake in Haldiram’s at a massive 80,000 crore valuation. This deal is interesting because Haldiram’s, which has remained private for eight decades and now makes more than 14,000 crores in yearly revenues, is expected to go public this year too.
Haldiram’s Acquisition: What You Need to Know
Haldiram’s is not under the acquisition radar for the very first time. This is not new—we have seen this before, and several times. Every possible FMCG player or private equity player, including PepsiCo, Tata, and Blackstone, has taken their shot at it. Haldiram’s has been a hot target for quite some time. However, what has stopped the acquisition for years is the family’s intention to sell the company and the complicated structure that exists in the family business.
The Structure of the Company
Haldiram’s is one of the oldest consumer companies in the country. If you go back to 1937, the empire we know today was just a small shop started by Ganga Bishan Agarwal with an innovative Bhujia recipe that turned into a money-printing empire over eight decades. This empire, by the way, has been passed down through more than three generations of family members.
The family business has been complicated. There have been feuds and a lot of partitions. In fact, surprisingly, if you open Haldiram’s different websites, you would see completely different websites owned by different sections of the family. At the business level, this entire split can be divided into four units, each managed by different parts of the family:
- Nagpur Unit (West and South India)
- Bikaner Unit
- Kolkata Unit (East India)
- Delhi Unit (North India)
Interestingly, Haldiram’s gave birth to one of its own biggest competitors—Bikaji.
How Can a Group Like This Be Acquired?
The short answer is demerger. The entire FMCG part of the Delhi and Nagpur side of the business is getting demerged and turning into a separate legal company called Haldiram Snack Foods Private Limited. This is where both the Delhi and Nagpur-based entities, which are also the biggest parts of the business, will own 56% and 44% respectively.
So, one thing is clear: the FMCG business is where the investment money will come in, and this will become a smoother way for the group to go down the IPO path, just like their biggest competitor Bikaji.
Why FMCG and Not the QSR Business?
The acquisition is only for the food business because the food business is the backbone of the company. Everything from Namkeen and sweets to ready-to-eat products is the biggest part of Haldiram’s. In fact, their penetration is so deep that you can find a Haldiram’s Bhujia packet anywhere in the country—whether at a Panwala, a normal Kirana shop, or even quick commerce platforms.
If you look at the financials, 85% of the revenue comes from the packaged food business, while only 15% comes from the QSR business. The success is also reflected in market share numbers—Haldiram’s has a massive market share of 36% in the ethnic snack space and 13% in the overall snack space, which is more than the market share of the next eight players combined.
Haldiram’s QSR Strategy
Haldiram’s is essentially a packaged food company with a layer of QSR on top. This QSR layer does two things:
- Adds a new revenue vertical by taking advantage of India’s growing QSR wave.
- Acts as an exclusive distribution channel to increase brand recall and trust among consumers.
Many products and SKUs available in Haldiram’s QSR outlets are exclusive to these stores. By integrating their packaged food products into the dining experience, they ensure that the brand remains fresh in the minds of customers.
Why Is Temasek Investing in Haldiram’s?
Temasek, a Singapore-based sovereign wealth fund, has a massive portfolio of $390 billion. India is one of the top few countries in its investment strategy. Their bullishness is evident—they are investing more than $10 billion (80,000 crores) in India over the next three years.
Haldiram’s will become Temasek’s second food bet after Rebel Foods. The logic behind investing in the food sector is simple:
- India’s per capita income is rising, leading to higher consumption.
- The demand for packaged foods is increasing.
- More 100 crore D2C brands are emerging.
- Quick commerce is becoming the norm.
Interestingly, India recently became the world’s third-largest packaged food market.
Why a 10% Acquisition?
A 10% stake in Haldiram’s allows Temasek to participate in the Offer for Sale (OFS) when the company goes public. This ensures quick gains post-IPO while still retaining a stake in the company.
What’s Next for Haldiram’s?
If the deal goes through, we can expect two major developments:
- International Expansion: Haldiram’s already has a presence in 80+ countries, and this funding will allow them to grow even further.
- New Product Launches: Haldiram’s may introduce new food categories, such as frozen foods, health-focused products, and premium food items—similar to how they launched their premium chocolate brand, CocoBay.
Conclusion
Haldiram’s is at a crucial turning point with its upcoming IPO and foreign investment. The company’s dominance in the packaged food sector, combined with strategic expansion plans, makes it an attractive bet for investors. Whether the deal goes through or not, Haldiram’s continues to solidify its position as India’s top FMCG brand.
FAQs
1. What is the valuation of Haldiram’s in this deal?
Haldiram’s is being valued at 80,000 crore in this acquisition deal.
2. Why is the deal focused on the FMCG business and not the QSR segment?
The FMCG business generates 85% of the revenue, holds a dominant market share, and offers better growth opportunities compared to the QSR segment.
3. Who are the main competitors of Haldiram’s?
Key competitors include Bikanervala, Balaji Wafers, PepsiCo (Lay’s), and ITC (Bingo!) in the packaged food space.
4. Why is Temasek investing in Haldiram’s?
Temasek sees potential in India’s growing consumption market and aims to gain from the company’s strong brand presence and IPO listing.
5. What will change after the investment?
Haldiram’s will focus on international expansion and launching new product categories to strengthen its market position.
Stay tuned for more updates on India’s biggest consumer deals!
