Haldiram Has Offers From Blackstone Led Consortium Despite PE Funds Withdrawing From India

Haldiram Has Offers From Blackstone Led Consortium Despite PE Funds Withdrawing From India

A global group of investors is reportedly in the running to acquire a controlling stake worth USD 8 to 8.5 billion in the well-known food and snack chain Haldiram

Vikrant DurgaleUpdated: Tuesday, May 14, 2024, 01:28 PM IST
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Watch Video: Haldiram trends after journalist heckles store manager over 'Urdu' text on snack package | File Photo

A global group of investors is reportedly in the running to acquire a controlling stake worth USD 8 to 8.5 billion in the well-known food and snack chain Haldiram, which was founded in 1937 in Bikaner, Rajasthan. The bid is non-binding.

Blackstone Bid On Haldiram

According to reports, a global consortium comprising the Abu Dhabi Investment Authority (ADIA), Singapore's GIC, and leading private equity (PE) firm Blackstone submitted a bid last week for a potential 74 to76 per cent stake in Haldiram Snacks Food.

The deal comes after Haldiram's Nagpur and Delhi divisions merged with approval from India's Competition Commission in the previous year. The FMCG businesses of HSPL and Haldiram Foods International Pvt. Ltd.

HFIPL, a division of the Haldiram Nagpur group, was separated as part of the reorganization and merged into a new company called Haldiram Snacks Food Pvt. Ltd. (HSFPL), in which the current shareholders of HSPL and HFIPL own 56 per cent and 44 per cent of the shares, respectively.

Manohar Agarwal and Madhu Sudan Agarwal headed the family business in Delhi, while Kamalkumar Shivkisan Agrawal led the business in Nagpur. Ganga Bhishen Agarwal, the founder of Haldiram, started the company in 1937, and his grandsons led the Nagpur branch.

Originally a modest, family-run candy store, Haldiram now sells more than 400 types of namkeen snacks, candies, and ready-to-eat foods in more than 100 nations.

PE Funds and VC Invesments

A significant portion of the fall in India came from VC investments, which dropped by about 60 per cent as a result of their exposure to high-growth companies with less developed economic models. according to the report on Indian private equity.

While large-scale dealmaking (USD 500 million+ deals) continued for high-quality assets, PE investments declined by a more moderate 20 per cent. Despite this, PE investments remained relatively resilient.

Traditional sectors held up relatively well during the overall decline in PE-VC investments, declining by about 15 per cent as investors kept funding companies with established operating economics and traits of secular growth.

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