Bain Capital and Tata Group in bidding war to buy snack maker Haldiram’s at $10bn valuation

Indian conglomerate Tata Group-owned Tata Consumer Products is reportedly in talks to acquire stakes in snack maker Haldiram’s.

According to a Reuters report, Tata Consumer Products wants to acquire at least a 51% stake in the brand. The snack maker reportedly demanded a $10bn valuation, to which Tata said the ask is “very high”.

The report added that Haldiram’s is also engaging with private equity firms, including Bain Capital, to sell a 10% stake.

Tata Consumer Products hesitates to acquire Haldiram’s stake at a $10bn valuation, given that the snack maker generates around $1.5bn in revenue annually.

The development comes amid Mukesh Ambani’s rapidly expanding its retail presence. Ambani’s Reliance Retail is reportedly in talks to acquire $2.5bn in funding after the $1bn investment commitment from Qatar Investment Authority.

In response to the media reports, Tata Consumer Products said it “does not comment on market speculation”.

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Haldiram’s was founded in 1937 by Shivkisan Agrawal in Nagpur. Since then, the company transformed itself into a multinational sweets, snacks and restaurant company. In addition to the Indian market, it sells its products in international markets like the United States and Singapore.

Haldiram’s is well-known for its crispy “bhujia” snack, sold for as little as Rs 10 across Kirana stores. It has almost 13% market share of India’s $6.2bn savoury snack market, according to Euromonitor International. Pepsi, famous for its Lay’s chips, also has around 13%.

On the other hand, Tata Consumer Products had revenue of $1.7bn or Rs 13,783 crore, with a profit of Rs 1,634 crore in the past financial year.

Source: Indian Startup News

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