Temasek, owned by the Singapore government, is close to acquiring a 10% stake in Haldiram Snacks Foods, valued at $10 billion. Both parties have signed a term sheet, and due diligence is underway. A binding offer is expected within a month, marking one of India’s largest deals in the FMCG sector.
Haldiram Snacks’ Robust Growth Fuels Investor Confidence
Haldiram Snacks Foods, formed by merging businesses of the Delhi and Nagpur families, reported consolidated revenue of Rs 6,375 crore in FY23, up from Rs 5,195 crore in FY22. Net profit surged by 74% to Rs 593 crore. This impressive performance underscores the brand’s strong position in India’s snack market.
Competing Offers and Future Prospects
Temasek’s offer outpaced competing bids from private equity firms like Bain Capital and Blackstone. While Blackstone proposed acquiring a 20% stake, its valuation was lower. Haldiram’s promoters aim to leverage the IPO boom, planning a public listing within a year to further capitalize on market opportunities.
Focus on Global Expansion and Investment Themes
With a vast export market waiting to be tapped, Haldiram’s global potential has drawn investor attention. Temasek, which plans to invest $10 billion in India by 2027, has highlighted its focus on health care, consumer products, digitization, and sustainability. These themes align well with Haldiram’s growth trajectory.
Strategic Changes and Recent Deals
Haldiram Snacks Foods underwent restructuring, merging Delhi and Nagpur entities into a unified FMCG business. Meanwhile, Kolkata-based Haldiram Bhujiawala recently sold a minority stake for Rs 235 crore, showcasing investor confidence across the group.
Conclusion
The Temasek-Haldiram deal signifies the growing allure of India’s FMCG sector for global investors. With strong financials and expansion plans, Haldiram Snacks Foods is poised to make its mark in both domestic and international markets, reinforcing its legacy as a leading snack brand.
