After establishing a strong presence in India, Haldiram is now set to make waves internationally with a new partnership. Singapore-based global investment firm Temasek has expressed interest in acquiring a 10% minority stake in Haldiram, marking a significant milestone for the iconic Indian snack brand.
Details of the Deal
Temasek is reportedly in advanced negotiations to purchase this stake at a valuation between $10 billion and $11 billion, which translates to approximately ₹85,700 crore to ₹94,270 crore. The two companies have already signed a term sheet, indicating a commitment to move forward with the deal. This partnership comes after 18 months of searching for an international investor and positions Haldiram for further expansion into global markets.
Key Developments in the Deal
- Term Sheet Signed: A term sheet, which outlines the main terms of an investment deal, has been signed between Temasek and the promoters of Haldiram Snacks. This document serves as the foundation for a more detailed and binding agreement in the future.
- Pre-IPO Valuation Benchmark: The deal is being labeled as a pre-IPO initiative, expected to unlock significant value for Haldiram Snacks in the coming years. The acquisition is anticipated to set a valuation benchmark ahead of a potential public offering.
- Targeted Finalization by February: While the deal has progressed slowly, significant groundwork has been laid since December. The Haldiram family members are reportedly aligned, and efforts are underway to finalize agreements by February 2025.
Competitive Landscape
Several private equity firms, including Blackstone and Alpha Wave Global, also expressed interest in acquiring stakes in Haldiram. However, Temasek has emerged as the frontrunner after other bidders withdrew from the race. Earlier reports indicated that Haldiram may look to sell up to 20% stake as part of its ongoing attempt to unlock value in the firm.
Haldiram’s Product Portfolio
Haldiram offers a diverse range of products, including snacks, sweets, ready-to-eat meals, frozen foods, biscuits, non-carbonated beverages, and pasta. The company boasts a robust business of approximately ₹63,000 crore in India and exports its products to various countries across North America and Europe.
Future Prospects
This partnership with Temasek is expected to bolster Haldiram’s expansion plans and support its entry into both domestic and international markets. There are also discussions about potentially launching an initial public offering (IPO) in the future. As Haldiram prepares to take its iconic flavors beyond Indian borders, this strategic alliance signals a promising future for one of India’s most beloved snack brands.
Disclaimer: The information provided in this article is based on recent reports regarding Haldiram’s partnership with Temasek.
