American alternative investment company Blackstone is in advanced negotiations to acquire a controlling interest in Haldiram’s, a family-owned snack company with retail stores and restaurants across India.
The potential deal could value Haldiram’s at Rs700bn ($8.38bn), Moneycontrol has reported.
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The investment company, with partners Abu Dhabi Investment Authority and Singapore’s GIC, both of which contribute to its global funds, has been engaging with the Haldiram Agarwal family.
Sources report: “There has been a lot of back and forth with the family members over the valuation of the business. Also, the family is not looking at giving away a 76% controlling stake, which the private equity investors wanted, and wants to retain a larger share of the business.
“Some family members would like to sell only a 51% stake but the current discussions with Blackstone are likely to see a stake sale of closer to 74%.”
In May 2024, the Economic Times reported that disagreements over the valuation have prolonged negotiations, with Blackstone initially aiming to secure as much as a 76% stake in Haldiram’s.
Moneycontrol reports that Haldiram’s promoter group has re-engaged with Blackstone during June and July.
Nevertheless, the potential sale is not assured, as the promoters consider an initial public offering (IPO) for Haldiram’s which could value the company between $8bn and $8.5bn.
This is short of Haldiram’s $12bn expectation, as reported by Bloomberg in June.
Haldiram’s has also attracted interest from investment entities including Bain & Co and Temasek Holdings.
The development follows the merger of Haldiram’s Nagpur and Delhi branches, a move that received the green light from the Competition Commission of India in 2023.
Haldiram’s, which offers namkeen snacks, pre-mixes, sweets, ready-to-eat items and frozen foods, has a strong presence in India and exports to European and US markets.
It also operates a network of restaurants and confectionary outlets in Indian cities.
In August 2023, the company expanded its footprint in India by opening a new outlet in Hyderabad.
