Update: Haldiram has categorically denied any such news about Tata Group’s interest or their inclination to sell majority stake. But the source of this story, that is Reuters story, is still live. We will keep updating as more information comes in..
Earlier..
In a recent update, the Indian conglomerate, Tata Group’s consumer unit, is in talks to buy at least 51% of popular snack food maker Haldiram’s.
Tata Groups In Talks to Buy 51% Stake In Haldiram
While that is happening, the Mumbai headquartered company is not comfortable with the $10 billion valuation sought, according to the two people briefed on this matter.
On the conclusion of this deal, the conglomerate would directly compete with Pepsi and billionaire Mukesh Ambani’s Reliance Retail.
In the meantime, Haldiram, which is a household name in India, is also talking with private equity firms including Bain Capital about the sale of a 10% stake, said the sources.
When it comes to Tata Consumer Products, it already owns UK tea company Tetley and also has a partnership with Starbucks in India.
Now, the fast moving consumer goods company is negotiating the stake purchase, the sources noted.
An Exciting Opperchunity For Tata
Tata wanted to buy more than 51% but has told Haldiram’s that its “ask is very high”, said another person with direct knowledge of this matter.
It can not be denied that the potential acquisition represents an exciting opportunity for Tata as Tata (Consumer) is seen as a tea company.
Plus, Haldiram’s is huge in the consumer space and has a wide market share, said the sources on condition of anonymity.
On this matter, a spokesperson for Tata Consumer Products said it “does not comment on market speculation”.
In the meantime, Haldiram’s Chief Executive Krishan Kumar Chutani and Bain declined to comment on this matter.
When it comes to Family-run Haldiram, the firm traces its origins back to a tiny shop founded in 1937 and is well-known for its crispy “bhujia” snack sold for as little as 10 rupees across mom-and-pop stores.
Presently, it holds almost 13% share of India’s $6.2 billion savory snack market, as per the information provided by Euromonitor International.
Besides this, Pepsi, famous for its Lay’s chips, also has around 13%.
In addition to this, Haldiram’s snacks are also sold in overseas markets like Singapore and the United States.
The restaurant company has around 150 restaurants selling local food, sweets and western cuisine.
