Haldiram Promoters: India’s famous namkeen and snacks manufacturing company, Haldiram, will no longer be sold. The company’s promoters are not happy with the offers it has received from various companies. Therefore, he can postpone the decision to sell it. A valuation of Rs 69,138 crore ($8.3 billion) was fixed to buy Haldiram. The promoter family did not like this amount. Due to this, he may reject these offers.
Promoters Are Not Ready To Sell The Company At This Valuation
Private equity firms had made non-binding offers to buy Haldiram Snacks Foods. According to a Business Standard report, senior officials of Haldiram have claimed that the promoters have told the private equity companies that they are not selling the company at this valuation. A source associated with Haldiram, on the condition of anonymity, said that the news of promoters selling the company is not true.
Blackstone Had Made The Offer By Forming A Consortium
Recent media reports claimed that Blackstone, Bain Capital and Singapore’s Temasek had offered to buy Haldiram Snacks. According to Reuters, in September last year, Tata Consumers also discussed purchasing a 51 percent stake in Haldiram.
At that time, the promoters valued the company at Rs 83,300 crore ($10 billion), which prevented the matter from being resolved. The company also talked with Bain Capital last year about selling an additional 10 percent stake before listing on the stock exchange, but the deal could not be made.
Haldiram Has Two Owners Becoming One
The two factions of Haldiram’s owner Agarwal family, New Delhi and Nagpur, had decided to merge the business. The third section of the family is in Kolkata. He is not included in the new deal. The FMCG business of Haldiram Snacks and Haldiram Food International has been merged to form a new company named Haldiram Snacks Foods.
In the new entity, existing shareholders of Haldiram Snacks were to hold a 56 per cent stake, and Haldiram Food International was to have a 44 per cent stake. After the completion of the deal, Haldiram Snacks Foods will run the entire FMCG business of Haldiram Group.
Haldiram Is Facing The Challenge From MNC
According to CRISIL Ratings, Haldiram Snacks’ income in FY 2023 was Rs 6,377 crore. 2023, the company’s profit increased by 74 percent to Rs 593 crore. According to a Frost & Sullivan report, Haldiram has a 36 percent share in the Namkeen market worth Rs 19,300 crore. Competition in this category has increased significantly with the entry of MNCs and other Indian companies like Pepsi.
