Temasek Acquires 10% Stake in Haldiram's for $1Bn, Beating Blackstone’s Offer

Singapore-based sovereign wealth fund Temasek has reached an agreement to acquire around 10% stake in Haldiram Snacks Foods, according to Reuters. The firm secured the minority stake in the combined FMCG business of the Delhi and Nagpur families of the Indian multinational snacks and savoury foods giant for around $1bn.

The deal took place after months of negotiations. A source familiar with the matter told the news agency that Temasek sees Haldiram's as a "prized asset” and believes that it will bolster its focus on India's fast-growing consumer sector.

Post the stake acquisition, Haldiram's value stands at $10bn. This deal is a testament to increasing popularity and interest in Indian food and beverage industry among the global investors.

This agreement marks one of the biggest transactions in the country's consumer goods (FMCG) sector in recent days. Notably, this is followed by an offer made by American private equity (PE) giant Blackstone to acquire a 20% stake in Haldiram's. However, they offered a much lower price and walked away due to over valuation issues, as per reports.

Temasek has already invested in Manipal Hospital and fast-food major Devyani International, which runs India franchises of KFC and Pizza Hut.

On the other hand, Blackstone is also eyeing to double its investment in India to $100bn amid rising opportunities, its CEO Stephen Schwarzman told Moneycontrol. It has invested around $50bn in India over the years.

Haldiram’s Market Dominance

What started as a small shop from Rajasthan’s Bikaner in 1937, now Haldiram's dominates around 13% 13% of India’s $6.2 billion savoury snacks market, according to Euromonitor.

Haldiram Foods International's consolidated net sales reached $550mn in FY24. This marked a 10.9% surge from the previous fiscal year. The company registered a net profit of $72mn in FY24 from $53mn in FY23.

Reportedly, the company promoters are considering an initial public offering (IPO) by next year. It aims to capitalise on India's buoyant stock market.