The renowned Indian snack giant Haldiram Snacks Food Pvt Ltd has become the epicenter of a fierce ownership battle, attracting some of the world’s most powerful private equity players. The 87-year-old company is witnessing an unprecedented bidding war, potentially marking the largest private equity acquisition in India’s history.
Bain Capital, in collaboration with Singapore’s Temasek, is vying for control against a consortium led by Blackstone. Bain and Temasek recently made a non-binding offer that values Haldiram at an impressive $8-8.5 billion. This valuation underscores Haldiram’s dominant presence in India’s burgeoning snack and convenience foods market. Initially, both Bain and Temasek approached Haldiram’s founding family separately before joining forces to strengthen their bid.
On the other front, Blackstone, partnering with the Abu Dhabi Investment Authority (ADIA) and Singapore’s sovereign wealth fund GIC, is aiming to secure up to a 76 percent stake in Haldiram. Notably, both ADIA and GIC are also limited partners with Bain, highlighting the intricate relationships within the global investment community.
In recent months, Bain has been engaged in discussions with the Agarwal family, which operates Haldiram. While these talks initially centered around a minority investment, the family’s interest in selling a majority stake surfaced as they finalized a restructuring plan. This plan involves merging Haldiram’s snack business and separating the restaurant chain, which the family intends to retain.
Both sets of suitors are eager to finalize the acquisition in conjunction with the National Company Law Tribunal (NCLT)-approved merger within the next few months. The Competition Commission of India (CCI) has already approved the merger plan, clearing a significant regulatory hurdle.
This bidding war marks the first collaboration between Bain and Temasek in India. The involvement of seasoned professionals like Haldiram’s Chief Executive KK Chutani, formerly of Dabur International, indicates a strategic shift towards professional management within the company.
Despite the submission of bids being a major milestone, the negotiations may encounter challenges due to the Agarwal family’s high valuation expectations. Nonetheless, with billions of dollars at stake and global investment giants in the fray, the outcome of this contest will likely reshape India’s snacking industry landscape. As the battle for Haldiram intensifies, the market watches closely, anticipating a landmark deal that could set new precedents in India’s private equity and consumer goods sectors.
