According to the reports, Blackstone, a leading private equity firm, along with Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC, has put forward a non-binding offer to acquire a 76% stake in Haldiram for $8.5 billion.
Haldiram is an 87-year-old renowned food, sweet, and snack chain established in Bikaner, Rajasthan, in 1937. The food chain is the Agarwal family’s joint packaged snacks and food business of the Nagpur and Delhi factions. The Nagpur faction leads Haldiram Foods International, whereas the Delhi faction leads Haldiram Snacks. NCLT (National Company Law Tribunal) approved the merger of these two entities as one company, which is expected to conclude within 3-4 months.
Further, the company took a significant step in May of 2023 by appointing KK Chutani as its CEO; it was the first time a professional had taken control of the company. The company is also undergoing major restructural reforms. Both Nagpur and Delhi factions split their FMCG (packaged foods) and restaurant businesses. A new entity, Haldiram Snacks Food Pvt Ltd (HSFPL), will be formed because of the merger between Haldiram Foods International Pvt Ltd (HFIPL) and Haldiram Snacks Pvt Ltd.
Economic Times mentioned that the Delhi side of the family, represented by Manohar Agarwal and Madhu Sudan Agarwal, will hold 55% of the stake in the merged entity. The Nagpur faction, represented by Kamalkumar Shivkisan Agrawal, will own 45% of the company.
Snack Food Business Of Haldiram
Haldiram’s snack food enterprise involves creating and delivering an extensive range of products within India and worldwide. Some of the products are:
- Snacks
- Namkeen
- Sweets
- Ready to eat & Pre-mixed foods
- Cookies
- Non-carbonated ready-to-drink
- Beverages
- Pasta
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What will Happen Next?
This is not the first time attempts have been made to acquire the company. Venture capitalist firms like Bain Capital, Warburg Pincus, and General Atlantic have also tried to buy the company but have been unsuccessful. It is yet to be seen what will happen next, as in an interview with ET, the company’s CEO declined to comment on the ongoing rumours about the acquisitions. Also, buyers have not confirmed the news yet.
