Temasek buys 10% stake in Haldiram's snacks business for Rs 8,500 cr

Singapore's investment firm Temasek has acquired a 10 percent stake in Haldiram's snacks business for $1 billion (Rs 8,500 crore), reported Reuters news agency. With this deal, the purchase price has increased the valuation of Haldiram's to $10 billion or Rs 85,000 crore.

Further, the snack-making company is likely to sell a 5 percent stake to Blackstone and consortium partners Abu Dhabi Investment Authority and Singapore's GIC or Alphawave Global.

The talks have been stalled due to the disagreement over valuation.

Last year, the Delhi and Nagpur branches of the business were merged into a new company called Haldiram Snack Foods Private Limited (HSFPL). The existing shareholders of HSPL (FMCG business of the Haldiram), and Haldiram Foods International Pvt Ltd (part of Haldiram's Nagpur Group) hold 56 percent and 44 percent of the stake, respectively.

The Delhi business of Haldiram was led by Manohar Agarwal and Madhu Sudan Agarwal while Kamalkumar Shivkisan Agrawal, grandsons of Haldiram founder Ganga Bhishen Agarwal anchored the Nagpur business of the company.

The salted snack segment is the biggest driver of HSPL with over 75 percent of revenue earned through this segment. The group has established its restaurant business (12 percent of turnover). It has multiple outlets (owned and leased) in north India. Additionally, Haldiram's comprises more than 400 varieties of namkeen, ready-to-eat food, and confectionary across 100 countries.

In fiscal year 2024, Haldriram's revenue surged to Rs 14,000 crore while the earnings before interest, tax, depreciation, and amortisation or Ebitda margin stood at 20-21 percent. The company has been growing at a compounded annual growth rate of 16-17 percent.