Bain, Temasek team up to vie for Haldiram pie: report

Bain Capital and Singapore’s Temasek have teamed up to buy a controlling stake in popular Indian snacks and restaurant brand Haldiram Snack Food Pvt. Ltd, The Economic Times reported.

ET had earlier reported that Blackstone, the world’s largest equity fund, had tied up with Abu Dhabi Investment Authority (ADIA) and Singapore’s sovereign wealth fund GIC to acquire control of the company.

The buyout funds are in the race for what could be the biggest private equity acquisition in the country.

Bain and Temasek have submitted a non-binding offer that values the company at up to $8.5 billion, the ET report said, citing people aware of the discussions.

The interest shown by the global equity firms in Haldiram’s follows the reorganization of the group’s business.

The key stakeholders are looking to time the transaction in line with the National Company Law Tribunal’s (NCLT) possible approval of the merger that is expected over the next few months.

The Competition Commission of India had last April approved the proposed demerger of the fast-moving consumer goods business of Haldiram Snacks Pvt. Ltd (HSPL) and Haldiram Foods International Pvt. Ltd (HFIPL) into Haldiram Snacks Food Pvt. Ltd (HSFPL).

Upon completion of the demerger, the shareholders of HSPL and HFIPL will acquire 56% and 44% shareholding in HSFPL.

Owned by grandsons of Haldiram founder Ganga Bhishen Agarwal, HSPL was run from Delhi while HFIPL operated out of Nagpur.

New York-based Blackstone, which has a current holding of $30 billion in India, has been looking to expand its portfolio in the country.

With the India snacks market expected to grow at a compound annual growth rate of about 9% in 2024-2032, PE firms are now eyeing the industry to expand their investments.

The Indian snacks market was valued at ₹42,694.9 crore ($5.11 billion) in 2023, according to a January report by research firm IMARC Group.