Tata In Talks To Buy Majority Stake In Haldiram’s, Snack Maker Eyes For $10 Billion Valuation: Report

Tata Group’s consumer unit is in talks to buy at least 51% of popular Indian snack maker Haldiram's, however, is not satisfied with the $10 billion valuation sought, sources were as saying by Reuters.

If the deal becomes fruitful, the Indian conglomerate will directly compete with Pepsi and Ambani’s Reliance Retail. Indian snacks brand, which is a common household, is also talking with equity firms including Bain Capital about the sale of a 10% stake, sources further revealed.

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Tata Consumer Products has baulked at the $10 billion valuation given that Haldiram's annual revenue is around $1.5 billion, it said. Sources also highlighted that Tata wants to buy more than 51% but has told Haldiram's that its "ask is very high."

"Tata (Consumer) is seen as a tea company. Haldiram's is huge in the consumer space and has a wide market share,” sources said. 

Founded in 1937, family-run Haldiram’s is known for its crispy "bhujia" snack sold for as little as 10 rupees across mom-and-pop stores back then. It has almost 13% share of India's $6.2 billion savoury snack market, according to Euromonitor International.

Haldiram's snacks are also sold in overseas markets like Singapore and the United States. The company has around 150 restaurants selling local food, sweets and western cuisine.

"If you want to suddenly grow big in size, no one better to provide access than Haldiram's. No other brand attacks packaged food, and food services, with equal panache," said Ankur Bisen, head of consumer and retail at Indian consultancy Technopak,” Ankur Bisen, head of consumer and retail at Indian consultancy Technopak, was quoted as saying by Reuters.

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Haldiram's Chairman Manohar Lal Agrawal last year told CNBC TV18 in an interview the company wanted to attract private equity investors and debut on the stock market in 2-3 years.