Tata Eyes 51% Stake in Haldiram’s Amid $10 Billion Valuation Stalemate, Paving the Way for Snack Food Industry Shake-Up

Indian Conglomerate Tata in Advanced Discussions to Acquire 51% Stake in Haldiram’s, Eyeing $10 Billion Valuation

An intriguing move for the Indian snack food market may be that the consumer division of Tata Group is in negotiations to buy a sizeable 51% stake in Haldiram’s, the renowned Indian snack food tycoon. According to insiders, the negotiations have stalled as a result of Haldiram’s staggering $10 billion price tag.

If this acquisition goes through, the powerful Mukesh Ambani-owned Reliance Retail and Pepsi will be in direct conflict with Tata Group. A 10 percent stake sale to private equity firms like Bain Capital is also being considered by the nation’s renowned Haldiram’s.

Given that Haldiram’s yearly sales average around $1.5 billion, Tata Consumer Products, known for brands like Tetley and its association with Starbucks across India, is cautious about going along with the $10 billion estimate. The entire acquisition procedure is now questionable as a result of this value problem.

As a sign of the market’s considerable interest in this possible game-changer, the announcement of Tata’s interest drove its shares to leap by more than 3% in late Wednesday trading in Mumbai. Tata is not only looking to secure a 51% stake in Hladiram’s but has also conveyed its concern about the lofty asking price to Haldiram’s.

With this acquisition, Tata has a tremendous ability to considerably diversify its clientele. While Haldiram’s has a large presence in the consumer snacks market and is a well-known brand in India, Tata is primarily linked with the tea business.

The fundamental beginnings of Haldiram’s can be traced to a small shop established in 1937. It became well-known for its delicious “bhujia” snack, which can be purchased for as little as ₹10 from pan shops all over India.

Surprisingly, Haldiram’s has successfully carved out a sizable market niche, accounting for around 13% of India’s $6.2 billion savory snack market. This equalizes it with Pepsi, known for its Lay’s potato chips.

It’s important to note that Haldiram’s snacks are also available in foreign markets, such as Singapore and the US. Additionally, the business manages 150 restaurants with a variety of regional and Western cuisines.

The outcome of this crucial contract is still up in the air while negotiations carry on in the background. The most important issue is whether Tata and Haldiram’s can reach an agreement on valuation and possibly change the snack food sector in India.

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‘51% Stake In Haldiram’s’ Article By Deby T