Blackstone has revised its plans to acquire a stake in Haldiram’s snacks business, dropping its initial bid for a 75% stake. The private equity firm is now in talks to purchase a 20% stake, valued at $8 billion, but disagreements over valuation remain.
Haldiram’s snacks seeks valuation of $12 Bn
Haldiram’s, India’s leading savoury snack brand with a 13% market share, has sparked interest from foreign investors. According to sources, Blackstone is keen to close the transaction, with one stating to Reuters, “Blackstone is keen to close the transaction as a lot of effort has gone into it.”
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However, Haldiram’s seeks a valuation of $12 billion, significantly higher than Blackstone’s offer. The company’s reluctance to sell a majority stake led to the revised proposal. Other investors, including Bain Capital, Temasek, and Abu Dhabi Investment Authority (ADIA), are also vying for a minority stake.
Tata Group in talks to acquire Haldiram in $10 Bn in 2023
Last year, Tata Group was in talks to acquire a majority stake in Haldiram’s entire snacks and restaurants business, seeking a valuation of $10 billion. However, those discussions ended without a deal.
Founded in 1937, Haldiram’s has grown from a small shop in Bikaner, Rajasthan, to a popular brand with over 150 restaurants. Its iconic “bhujia” snack, sold for as little as 10 rupees, remains a favourite among Indians.
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If successful, the revised deal would mark a significant investment in India’s snack market. Blackstone’s willingness to adapt its proposal demonstrates its interest in partnering with Haldiram’s. The outcome of these negotiations will be closely watched, given the brand’s dominance in India’s $6.2 billion savoury snack market.
As one of the sources noted, the valuation gap remains a sticking point. Whether Haldiram’s and Blackstone can reach mutually agreeable terms remains to be seen.
