Private equity firm Temasek will acquire nearly 10% stake in Haldiram Snacks (Haldirams) for about Rs 8,600 crore ($1 billion), sources told FE. This transaction marks the largest private equity deal in India’s consumer sector, valuing Haldirams at ₹86,000 crore ($10 billion).
“We look forward to working with Temasek to harness the value they bring from their experience in the consumer space to accelerate our growth and strengthen our ability to meet evolving consumer demands,” a spokesperson for Haldirams said. PwC’s Investment Banking team acted as the exclusive financial advisor for the transaction, while Khaitan & Co acted as the legal advisor.
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The New Delhi and Nagpur factions of the Agarwal family, promoters of the Haldiram Group, are in the process of merging their businesses after receiving approval from the Competition Commission of India (CCI) last year. According to regulatory filings, Haldirams reported a revenue of Rs 12,800 crore and a net profit of Rs 1,400 crore in FY24. It is one of India’s leading snack brands, holding an estimated 13% share of the Rs 45,000 crore market, according to industry experts.
Sources told FE that Haldirams is likely to sell an additional 5-6% stake to another investor soon. This deal is also expected to value the company at Rs 86,000 crore, implying a transaction size of nearly Rs 5,000 crore. The promoters are likely to use the ₹13,000 crore raised from both rounds of funding for business expansion.
The Temasek deal, which was announced on Sunday, caps months of negotiations between the Agarwal family and the Singapore-based firm. While Temasek had thrown its hat into the ring last year, rivals Bain Capital and Blackstone had also entered the race at that time. Initially, all three firms sought at least a 51% stake, but concerns over valuation led to the deal being scaled down to around 10%. Temasek will get a board seat in the company and may look to increase its stake in the future, they added.
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Temasek executives were not immediately available for comment. As of March 2024, the firm had a reported $37 billion exposure to India and is now diversifying beyond its investments in companies like Manipal Health,
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