According to the report, Tata Group’s consumer unit is in talks to buy at least 51 per cent of popular Indian snack food maker Haldiram’s but is not comfortable with the $10 billion valuation sought, two people briefed on the matter said. Haldiram’s, a household name in India, is also talking with private equity firms including Bain Capital about the sale of 10% stake, they said.
If a deal were to be reached, the Indian giant would go off against Pepsi and Mukesh Ambani’s Reliance Retail, which is owned by the billionaire.
The sources claimed that Tata Consumer Products, which controls the UK tea company Tetley and collaborates with Starbucks in India, is negotiating the stake acquisition according to the Reuters report.
According to a source cited in the article, Tata sought to acquire more than 51% of Haldiram’s stock but told Haldiram That their “ask is very high.” The potential acquisition represents an exciting opportunity for Tata, the source said, adding: “Tata (Consumer) is seen as a tea company. Haldiram’s is huge in the consumer space and has a wide market share.”
According to a Tata Consumer Products spokesman, the company “does not comment on market speculation.” Bain And Haldiram’s CEO Krishan Kumar Chutani declined to comment.
A little brief about Haldiram’s
The family-run Haldiram’s chain has its roots in a small shop that opened in 1937. It is well known for its crispy “bhujia” snack, which can be bought in mon-and-pop shops for as little as 10 rupees.
According to Euromonitor International, its market share in India’s $6.2 billion savoury snack market is approximately 13%. Additionally, Pepsi, known for its Lay’s chips, has about 13%.
Snacks made by Haldiram are now offered in international markets like Singapore and the US. The company operates 150 restaurants that serve regional fare, sweets, and Western food.
There are more than 410 goods available from Haldiram’s. Traditional namkeens, Western snacks, traditional and modern Indian sweets, cookies, sherbets, and pickles are among its product offerings.
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