American private equity firm Blackstone, Abu Dhabi Investment Authority (ADIA), and Singapore’s GIC plan to invest INR 40,000 crore in the iconic Indian brand Haldiram. However, this is not the first time this consortium has bid to acquire a majority stake in the company.
On May 15 2024, it was rumoured Blackstone led a consortium that made an offer of more than $8 billion to acquire a 76% stake in the company. According to money control, the company this time has sweetened the offer to enter the lucrative Indian snack market, pegging the valuation of the company at between Rs 70,000 and 78,000 crore. The company further mentioned that the final offer would be made after EY had done the due diligence.
A banker who was aware of the ongoing deal mentioned, “The deal and valuations were getting stretched on these issues, and now, with the matter brought to a closure, the deal should close soon.” Some of these issues included the ownership of restaurants and brand licences, which will now rest with the Aggarwal family. Further, as part of the deal, the Haldiram family will receive an annual royalty from the new owners for the use of the Haldiram brand.
Why Entering The Indian Snack Market?
Sriram, a financial journalist in Reuters, contributed to the news and mentioned that this strategy is influenced by multiple factors, such as geopolitical tensions and active commodity markets in the financial landscape. He further states that future updates about Blackstone’s significant investment in Haldiram will reveal the asset management firm’s strategic plans and their potential effects on Haldiram’s business operations. This partnership is expected to influence market dynamics, offering insights into how Blackstone’s involvement might shape Haldiram’s future.
