What began as a small namkeen shop in Rajasthan’s Bikaner in 1937 by Ganga Bhishen Agarwal is set to capture global consumer markets. India’s leading homegrown packaged foods major, Haldiram’s, is raising significant amounts from global investment firms.
The 88-year-old family-run group will fund its growth plans in overseas markets with the receipts.
Haldiram’s Snacks Food, a flagship entity of Haldiram’s Group, recently raised capital from three leading investment companies: Temasek, Alpha Wave, and International Holding Company (IHC). While the company did not specify details, sources say it has raised as much as $1 billion selling a 10% stake, taking its valuation close to $10 billion (`87,000 crore).
A Haldiram’s Group spokesperson says the group is looking forward to working with investors to harness the value they bring from their experience in the consumer space to accelerate the company’s growth and strengthen its ability to meet evolving consumer demands. Singapore-based Temasek is a leading investor from Asia with a net portfolio value of $288 billion as of 31 March 2024.
Alpha Wave is a global investment company that focuses on private equity, private credit, and public markets, and UAE-based IHC is one of the world’s largest investment companies with a market capitalisation worth $ 250 billion. “The partnership represents patient capital and long-term support to growth plans. With this partnership, we are well-positioned to enhance our product offerings, expand our operations, and further our mission to make Haldiram’s a household name in the Middle East and other international geographies,” the spokesperson says in a statement.
Haldiram’s has grown steadily since its inception and has become popular across the country. In several developed markets, it commands patronage from the Indian diaspora. To leverage its popularity among non-resident Indians in the USA and West Asian countries, it plans to use some of the funding to increase its presence in these markets.
The Agarwal family has been scouting fundraising options for a while now. It was initially reported that the company would be selling a majority stake and that it had signed a term sheet to sell 20% at a $10 billion valuation. For over a year, the company was reportedly in talks with investors and FMCG giants to find the right partner. Even foreign players like PepsiCo and Kellogg’s were vying for a share of the Indian savoury snack market. In a press statement, the deal’s advisor, PwC, highlighted that the strategic move will further strengthen Haldiram’s financial position as it accelerates its global expansion plans, particularly in the US and the Middle East. “This transaction is not only the largest private equity consumer deal in India, but also a reflection of domestic businesses that continue to elevate India’s positioning on the global stage,” says Sanjeev Krishan, Chairperson, PwC in India. According to Rick Gerson, Co-founder and Chairman of Alpha Wave Global, the Agarwal family has built Haldiram’s into one of the most loved and iconic brands in India, and it is set to enter a new phase of domestic and international growth.
Haldiram’s business was divided into three separate entities: one in Delhi, founded by Manoharlal (Haldiram’s grandson); one in Nagpur, established by Shiv Kishan (another grandson); and one in Kolkata—all operating under Haldiram’s brand.
However, the Nagpur and Delhi families merged the FMCG businesses of Haldiram Foods International (HFIPL) and Haldiram Snacks (HSPL), part of the Delhi group, into a newly formed entity, Haldiram Snacks Foods (HSFPL). HSFPL’s CEO Krishan Kumar Chutani announced the decision on the social media platform LinkedIn earlier this month.
Under the merger agreement, existing shareholders of HSPL and HFIPL would hold 56% and 44% stakes, respectively, in HSFPL. HSFPL would be consumer products operations for the entire Haldiram’s group. In November last year, Kolkata-based Haldiram management raised `235 crore by selling a minority stake to Bharat Value Fund.
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