In a major development in India’s snack industry, Blackstone Group is reportedly considering acquiring a 15-20% stake in Haldiram’s, one of the most recognized snack brands in India. The proposed deal values Haldiram’s at $8 billion, though negotiations have seen challenges due to valuation disagreements. Haldiram’s, a brand with deep roots in Indian culinary history, initially sought a $12 billion valuation for its snack business, causing a gap between the company’s expectations and potential investors’ offers.
Previously, Blackstone explored buying a controlling stake in Haldiram’s. However, the company has pivoted to a minority stake due to Haldiram’s reluctance to relinquish majority control. Other prominent global investment firms, including Bain Capital, Temasek, and Abu Dhabi Investment Authority, have also shown interest in Haldiram’s, but none have finalized a deal, partly due to the company’s high valuation target.
Amid these negotiations, Haldiram’s is considering an alternative path—a public listing (IPO) to meet its valuation goals. This could potentially attract significant capital, given the buoyant IPO market in India. Founded in 1937, Haldiram’s has evolved from a small store in Bikaner to an extensive snack empire with over 150 outlets and a strong presence in both domestic and international markets. Its IPO could support further expansion and modernization efforts as it navigates a rapidly changing snack market driven by consumer demand for traditional flavors.
This potential investment deal highlights the increasing global interest in Indian food brands and the strategic choices family-owned businesses face in balancing growth with control.
Key Highlights:
- Blackstone eyes a 15-20% stake in Haldiram’s, valuing it at approximately $8 billion.
- Haldiram’s originally sought a $12 billion valuation, leading to challenges in finalizing the deal.
- Other investors, including Bain, Temasek, and ADIA, have shown interest in Haldiram’s.
- The company is considering an IPO as an alternative to private equity investment.
Sources: This article is based on information from VCCircle, Goodreturns, and Reuters.
