Singapore’s sovereign fund, Temasek Holdings, has sought approval from the Competition Commission of India (CCI) to acquire a 10 percent stake in Haldiram Snacks Food, India’s largest producer of packaged snacks, sweets, and restaurant operator, according to reports.
The investment will be made through Temasek’s subsidiary, Jongsong Investments. This proposed transaction, which was formally filed with the CCI on March 20, involves the acquisition of less than 10 percent of Haldiram Snacks Food Pvt Ltd’s issued equity shares.
Temasek’s move is part of its strategy to invest in India’s fast-growing packaged food industry, with Haldiram being a leading player.
Haldiram, known for its wide range of snacks and sweets, had a revenue exceeding INR 12,500 crore (USD 1.45 billion) in FY24. The deal is valued at approximately USD 10 billion, underlining the immense growth potential within India’s packaged food sector.
In its submission to the CCI, the parties involved asserted that the transaction will not raise any competition law concerns. They explained that, regardless of how the markets are defined, the acquisition will not significantly affect competition.
However, to assist in the CCI’s review, they outlined that the relevant market should be seen as the broader packaged food sector in India. Specific segments within this market include snacks, sweets, dairy products, bakery items, chocolates, and ready-to-eat and non-carbonated beverages.
Industry insiders revealed that the Agarwal family, which owns Haldiram, may bring in another investor to sell additional stakes in the company.
This comes after months of negotiations, with several private equity firms, including Blackstone, Alpha Wave Global, and Bain Capital-led consortiums, vying for a stake.
Despite initial intentions to divest a larger portion, the Agarwal family has decided to limit the sale to a minority stake, indicating their strategic approach to maintaining control of the business.
The funds from Temasek’s investment are expected to help Haldiram accelerate its expansion plans, both within India and internationally.
Haldiram, originally founded in 1937 in Bikaner, Rajasthan by Ganga Bhishen Agarwal, now operates in over 80 countries. The company is currently merging its Delhi-based and Nagpur-based operations into a unified entity, Haldiram Snacks Food, a move that has already received approval from the National Company Law Tribunal.
As the company eyes future growth, there are also indications that Haldiram may consider an Initial Public Offering (IPO) next year, capitalising on India’s bullish stock market.
