Haldiram-Temasek $10 Billion Deal: Singapore Firm to Bite 10% Stake in Snack Giant

Haldiram has inched closer to selling a 10 per cent stake worth $10 billion to Singapore government-owned investment firm Temasek. The promoters of the snacks company, the Agrawal family and Temasek, have signed a term sheet for the deal and is likely to arrive at a binding offer in a month’s time, according to Moneycontrol. 

Haldiram’s Stake Sale Race 

The rumors around the Indian snacks giant offloading nearly 15 per cent stake have been surfacing since last year. Haldiram has become a major attraction for international investors, particularly because the Indian snack market is set to nearly double in size and is likely to touch Rs 95,521.8 crore by 2032, according to a report by International Market Analysis Research and Consulting Group. The company’s promoters are also considering a Dalal Street debut for Haldiram and are likely to launch an initial public offering (IPO) this year, according to multiple media reports.

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Earlier it was reported that Haldiram held close talks with several other private equity firms including Bain Capital and Blackstone,a for the stake sale. Reportedly, Blackstone dropped out of the stake sale race as it was eyeing a 20 per cent stake at a lower valuation. But the company’s promoters have plans of selling only a minority stake. 

“The family does not want to sell a controlling stake anymore. It is most likely now a minority deal...It is a well-run business that is profitable and generates a lot of cash. This (minority deal) makes more sense now,” Mint reported earlier, citing a source. 

The brand was reportedly in demand by Indian giants like Tata Consumers as well. An earlier report by Reuters mentioned that Tata Consumer Products was mulling to acquire a 51 per cent stake in Haldiram for $10 billion. However, the Tata Group later refuted such developments in an exchange filing. 

Demand for buying a stake in Haldiram is rooted in its long successful business and has become a household name in India. Haldiram’s was launched in 1937 as a sweet and namkeen retail shop by Ganga Bishan Agrawal, also known as Haldiram Ji.  

Haldiram’s humble beginning from a small, sweet shop in Rajasthan’s Bikaner to having its presence in nearly 100 countries with its offerings ranging around 400 products, including sweets, namkeens, confectioneries, frozen foods and ready-to-eat meals. In 2017, the company became India’s largest snack company.