Tata Looking To Buy 51% Stake In Haldiram's: Report

Tata Consumer Products is interested in acquiring a majority stake in Haldiram’s, but is hesitant about the company's ask of $10 million in valuation, sources stated.

Haldiram’s is also in discussions with private equity firms such as Bain Capital regarding the sale of a 10 per cent stake, the sources said. 

Source : haldiram.com

The consumer unit of the Tata Group is looking to acquire at least 51 per cent of snack food maker Haldiram’s, anonymous sources revealed to Reuters. While the former is interested in acquiring a majority stake in the sweets, snacks, and restaurant company Haldiram’s, the company is not comfortable with the $10 million valuation Haldiram’s is looking for. 

However, if both parties reach an agreement, this deal will make the Tata Group a direct competitor for Pepsi and Mukesh Ambani’s Reliance Retail. Haldiram’s, at the same time, is also in discussions with private equity firms such as Bain Capital regarding the sale of a 10 per cent stake, the sources said. 

The negotiations are being conducted by Tata Consumer Products. The company owns the UK tea company Tetley and is in partnership with Starbucks in India. The report quoted another anonymous source and added that Tata is looking to purchase more than the 51 per cent stake but has conveyed to Haldiram’s that its “ask is very high”. 

The source added that this deal can be an interesting venture for Tata and said, “Tata (Consumer) is seen as a tea company. Haldiram's is huge in the consumer space and has a wide market share.”

The report noted that a Tata Consumer Products’ spokesperson didn’t provide comment calling the news ‘market speculation’, while Haldiram’s Chief Executive Krishan Kumar Chutani and Bain refused to comment on the matter. 

Notably, Haldiram’s was founded in 1937, when it started as a small shop and today is popular across the country for it’s snacks such as ‘bhujia’. Haldiram’s controls about 13 per cent of India’s savoury snack market worth a total $6.2 billion, the report added on the basis of Euromonitor International’s data. While Pepsi also has a hold on 13 per cent of the market. Haldiram’s snacks are also sold globally in markets like Singapore and the United States. Additionally, the company has about 150 restaurants selling street food and sweets, among others.