Haldiram Snacks Food, a dominant player in India’s snack industry, is currently entertaining binding offers from some of the world’s top private equity firms, including Alpha Wave Global, Blackstone, and a Bain Capital-led consortium. These offers are for a 15-20% stake in the company, which is expected to be valued at more than $8.8 billion to $9.4 billion (approximately Rs 75,000-80,000 crore), according to The Economic Times. This potential transaction is being hailed as one of the largest private equity deals in India’s history, highlighting the growing interest in India’s fast-growing consumer goods sector, particularly the snack industry.
Alpha Wave Global, a firm traditionally focused on investments in technology, has caught many by surprise with its interest in the snack giant. The other major contenders in the bid include a consortium formed by Blackstone, GIC (Government of Singapore Investment Corporation), and ADIA (Abu Dhabi Investment Authority), as well as a Bain Capital-Temasek consortium. The competition for a stake in Haldiram’s demonstrates just how much investor interest is intensifying in India’s snack market, especially as consumers increasingly shift toward packaged and convenient snack options. According to industry sources, the bids for a stake in Haldiram’s are expected to range from Rs 11,250 crore to Rs 18,750 crore ($1.3 to $2.2 billion), depending on the final percentage of equity acquired and the terms related to management control.
Haldiram’s, which was founded in 1937, has undergone some significant transformations in recent years, including the merging of its two major branches in Delhi and Nagpur. The move, which received approval from the Competition Commission of India in April 2023, aims to streamline the company’s operations and expand its reach. In FY24, the combined entity generated an impressive Rs 12,800 crore in revenue, along with an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 2,580 crore and net profits of approximately Rs 1,400 crore. These financial figures underscore the strength of the brand and its ability to maintain growth even amidst rising competition in the snack segment.
While the private equity firms are pushing for significant stakes in the company, as well as potential control over the board, Haldiram’s promoters are also contemplating an initial public offering (IPO) in the next 12-24 months. The goal is to achieve a public market valuation exceeding $11 billion, which would be a remarkable milestone for the company. In the past, the family had explored the possibility of selling a controlling stake in the business but ultimately decided against it due to the differences in valuation with potential buyers.
Currently, Haldiram’s commands a substantial 13% market share in India’s $6.2 billion savory snack market, making it a key player in this fast-growing segment. However, it faces mounting competition from emerging “smart snacks,” including protein bars, fortified biscuits, and other health-oriented snack products. Despite these evolving market dynamics, Haldiram remains an industry leader due to its strong legacy, widespread brand recognition, and ability to adapt with an expanding product range. The company continues to innovate by launching new snack offerings that cater to a broader consumer base, thus retaining its relevance in an increasingly competitive market.
The interest from top private equity firms reflects the growing investor confidence in the Indian snack market and Haldiram’s strategic positioning within it. The company’s success is based on decades of brand-building, strategic expansion, and catering to the evolving tastes of Indian consumers, who are increasingly seeking quality snacks for various occasions. Despite facing challenges such as the rise of healthier alternatives, Haldiram’s is positioned well to leverage its legacy, product diversification, and market leadership to remain a key player in the snack industry for years to come.
