India-based Haldiram Snacks Food has recently agreed to sell a stake in the business to Temasek, the Singapore government-owned investment fund.
However, the specifics of the deal, including Temasek’s shareholding size and the payment amount, remain undisclosed.
In a statement a Temasek spokesperson directed inquiries to a statement issued by PwC, which served as an advisor for the transaction.
Officials from Haldiram Snacks Food, also known as Haldirams, were unavailable for comment. Established in 1937, Haldirams ranks among India’s largest domestic snack-food businesses, marketing an array of snacks, sweets, and other food products.
PwC’s statement indicated that Temasek agreed to purchase “an equity stake from the existing shareholders” of Haldirams.
This strategic transaction positions Haldirams to execute ambitious expansion plans both within India and globally, thereby solidifying its presence in an increasingly competitive market.
According to a quote from an unnamed Haldirams spokesperson in PwC’s statement, “We are thrilled to welcome Temasek as an investor and partner in Haldirams. We look forward to working with them to harness the value they bring from their experience in the consumer space to accelerate our growth and strengthen our ability to meet evolving consumer demands.”
In a report from Financial Express, it is noted that Temasek is acquiring approximately 10% of Haldirams for around Rs8,600 ($1.01 billion). However, the Temasek spokesperson declined to comment on the accuracy of these figures.
Pwc’s Sanjeev Krishnan, chairperson of the company’s India arm, commented: “This transaction is not only the largest private equity consumer deal in India, but also a reflection of domestic businesses that continue to elevate India’s positioning on the global stage.”
Additionally, in April, the Competition Commission of India supported a move by the Agarwal family, the promoters of the Haldiram Group, to demerge and combine the FMCG businesses from two separate companies into Haldiram Snacks Food, the entity receiving Temasek’s investment.
Under the planned transaction, the FMCG businesses, previously operated by Haldiram Snacks Private Limited and Haldiram Foods International Private Limited, are being consolidated into Haldiram Snacks Food.
The terms of the demerger stipulate that Haldiram Snacks Private Limited will hold 56% of Haldiram Snacks Food, while Haldiram Foods International Private Limited will own the remaining 44%.
Meanwhile, another Indian publication, The Economic Times, reported that the UAE-based fund Alpha Wave had also reached an agreement to acquire a 6% shareholding in Haldirams.