Tata Group’s consumer division is currently engaged in discussions to acquire a minimum of 51% ownership in Haldiram’s, a well-known Indian snack food manufacturer. However, sources familiar with the matter have revealed that Tata Group is expressing reservations regarding the proposed valuation of $10 billion.

Should the negotiations reach a successful conclusion, this agreement would position the Indian conglomerate to directly rival both Pepsi and the retail arm of billionaire Mukesh Ambani’s Reliance group.

Haldiram’s, a widely recognized brand in India, is reportedly in discussions with private equity firms, including Bain Capital, regarding the potential sale of a 10% ownership stake, as per their sources.

According to insiders, Tata Consumer Products, the owner of the UK-based tea company Tetley and a strategic partner of Starbucks in India, is currently in talks to acquire the stake.

A third individual with firsthand knowledge of the negotiations revealed that Tata expressed an interest in acquiring a majority stake exceeding 51%. However, Tata has communicated to Haldiram’s that the proposed valuation is considerably steep.

The potential acquisition represents an exciting opportunity for Tata, the person said, adding, “Tata (Consumer) is seen as a tea company. Haldiram’s is huge in the consumer space and has a wide market share.”

The insiders shared this information under the condition of anonymity.

A representative from Tata Consumer Products stated that they “do not provide comments on market speculations.” Haldiram’s Chief Executive Krishan Kumar Chutani and Bain declined to offer any comments.

Haldiram’s, a family-operated enterprise, can trace its roots to a modest shop established in 1937. It has gained renown for its crispy “bhujia” snack, which is available for as low as 10 rupees and can be found in local mom-and-pop stores.

According to Euromonitor International, it holds approximately 13% of India’s $6.2 billion savory snack market, a share comparable to Pepsi, renowned for its Lay’s chips.

Haldiram’s snacks are additionally available in international markets such as Singapore and the United States. The company operates approximately 150 restaurants that offer a diverse range of local cuisine, sweets, and Western dishes.