UAE-based Alpha Wave Buys 6% Stake in Haldiram's

Alpha Wave, a UAE-based investment fund, has acquired a 6% stake in Haldiram's for ₹5,600 crore. This follows a recent 9% stake sale to Singapore's Temasek. These investments are part of Haldiram's strategy to expand its presence and prepare for a potential IPO.

Haldiram's is valued at ₹84,000 crore after merging its Nagpur and Delhi businesses, is now exploring further stake sales and regulatory approvals to strengthen its market position.

Based in the UAE, Alpha Wave is known for its investments in high-growth sectors, including companies like SpaceX. The acquisition of 6% stake in Haldiram's for ₹5,600 crore is part of Haldiram's strategy to prepare for an IPO and expand its market presence.

Haldiram's journey from a family-run business to a global snack giant is fascinating indeed.

The recent investments by Alpha Wave and Temasek signal a transformative phase for Haldiram's. The funds can be utilized to innovate their product line, enhance manufacturing capabilities, and expand their distribution network.

With the financial backing of prominent investors, Haldiram's can strengthen its presence in international markets, tapping into the growing demand for Indian snacks worldwide.

These investments help establish a strong valuation for the company, paving the way for a potential Initial Public Offering (IPO). This could further boost their market presence and attract more investors.

With increased resources, Haldiram's can better compete in the fast-moving consumer goods (FMCG) sector, both domestically and globally.

This is a pivotal moment for Haldiram's as it transitions from a family-run business to a global powerhouse. What aspect of this journey intrigues you the most?

Haldiram's to Sell 10% Stake to Temasek

Haldiram Snacks Food, India's leading snacks and sweets company, has announced a strategic partnership with Singapore-based investment firm Temasek. Temasek will acquire a 10% equity stake in Haldiram Snacks Food at a valuation of $10 billion (approximately ₹85,000 crore). This deal is considered the largest private equity consumer transaction in India.

The investment will support Haldiram's ambitious expansion plans, both domestically and internationally, enhancing its presence in the competitive global snacks market. The transaction is subject to regulatory approvals and is expected to close soon.

The deal is subject to regulatory approvals and is expected to close soon.

Additionally, Haldiram is reportedly in discussions to sell an additional 5-6% stake, potentially raising another $500 million. This could further bolster its growth initiatives.

The Indian snacks market is projected to grow significantly, from ₹42,694.9 crore in 2023 to ₹95,521.8 crore by 2032. This positions Haldiram well for future growth.

Haldiram's journey from its humble beginnings in 1937 in Bikaner, Rajasthan, to becoming a global brand with products sold in over 80 countries is remarkable. This partnership with Temasek marks another milestone in its growth story.

The funds raised will be used to support Haldiram's ambitious expansion plans, both domestically and internationally. The company aims to strengthen its presence in the competitive global snacks market.

PwC's investment banking team acted as the exclusive financial advisor for the transaction, while Khaitan & Co provided legal advisory services.

Tata Group In Talks To Acquire Controlling Stake in Haldiram's

Tata Consumer Products, the consumer unit of Tata Group, is in talks to acquire at least 51% stakes in popular Indian snack food maker Haldiram's but the former is not good to proceed with the $10 billion valuation saught, reported Reuters citing two of its sources.

The report further stated that Tata wants to buy more than 51% but has told Haldiram's that its "ask is very high". Tata is unwilling at the $10 billion valuation asked, given that Haldiram's annual revenue is around $1.5 billion.

On other hand, Tata's consumer unit, which also sells salt, pulses, spices and mineral water, had revenue of $1.7 billion in the past financial year.

If this deal materialise, it would see the Tata Group directly compete with Pepsi and Reliance Retail.

Haldiram's is an 86 years old name and a multinational sweets, snacks and restaurant company. Haldiram's products are available in more than 80 countries and it has around 150 restaurants selling local food, sweets and western cuisine.

Haldiram's is also in talks with private equity firms including Bain Capital about the sale of a 10% stake, reported Reuters quoting its sources.

Haldiram's has almost 13% share of India's $6.2 billion savoury snack market, according to Euromonitor International. Pepsi, with its Lay's chips, too has around 13% share.

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

Indian Snacks Maker Haldiram's Ties with Amazon to Enter US E-Commerce Market

Indian snacks maker and a 37-year old brand, Haldiram's, has ventured into the US e-commerce market through Amazon's Global Selling Program, a program by Amazon launched in 2015 that enables businesses to list and sell their products across the world on Amazon global marketplaces.

With Amazon’s Global Selling program, Haldiram's is making its first direct venture into e-commerce in the US, the company said in a statement to a business daily.

Partnering with Amazon will help Haldiram's to expand and increase its penetration into the US market, which is already its biggest market globally accounting 40% of their annual revenues from offline exports outside India.

According to a report by Business Insider, Haldiram’s products Nut Cracker and Soan Papdi have already become a hit in the US within a week of its launch.



“Our loyal customers have helped us retain our leading position in the market for over ten years, and we want to further expand our presence amongst our global customers. With Indians settled across the world, there is a growing appetite for snacks that remind them of home. Collaborating with Amazon’s Global Selling Program allows us direct access to the American market,” said Pankaj Agarwal, managing director at Haldiram Snacks to Economic Times.

Founded in 1937, by Shri Ganga Bhishen Agarwal in Bikaner, Rajasthan, Haldiram's is also a member of Snacks Food Association (SFA), Virginia, USA which comprises of world renowned food product manufacturers.

Notably in 2015, Haldirams’ snacks were refused admittance into US market by the Food and Drug Administration (FDA) of USA alleging that its products contains a pesticide chemical. Later in the same year the company was given a clean chit by the Maharashtra Food and Drug Administration (MFDA). The official statement by MFDA ascertained, "Samples of Haldirams’ bhujia sev, navratan mix, potato chips, sonpapdi, moong daal, etc., were tested. All were within limits.

To recall, in April this year, Haldiram's also ventured into Indian startup ecosystem when it announced that it will be investing and mentoring consumer products startups in India for next 2 years and for same it has partnered with Mumbai-based Venture Catalyst (VCats), an integrated startup incubator and investment platform.

Haldiram’s to Invest & Mentor 10-15 Product Startups in Consumer Segment, Ties with Venture Catalyst

Indian sweets and snacks manufacturer, Haldiram’s will be investing and mentoring consumer products start-ups in India for next 2 years and it has collaborating with Venture Catalyst (VCats), an integrated startup incubator and investment platform, reported Business Line.

While Haldiram’s has not disclosed the corpus, it plans to invest in 10-15 consumer products goods startups over the next 2 years with the help of Venture Catalyst, which has already incubated consumer facing product-based startups such as men’s grooming brand Beardo, female hygiene brand PeeSafe and herbal energy shot drink FYRE.

The development comes within few days after it was reported that Haldiram , along with TPG Capital and others, have submitted an expression of interest (EoI) to acquire Delhi-based Kwality Dairy, a loss-making dairy startup.

"Haldiram’s has established its position as a leader, risk-taker and quality seeker in the industry. We have always strived to focus on identifying market opportunities and make the best use of them through product diversification and listening to the consumer intently. We want to share the knowledge acquired over the years and contribute to the burgeoning start-up ecosystem in the country," said a company spokesperson.

To recall, in February it was reported that Kellogg's, the world's second-largest snack foods company, is exploring options to acquire a stake in Haldiram's and which could be one of the biggest deals involving an Indian consumer brand.

Besides Haldiram’s, several other large domestic firms and MNCs in the FMCG sector are actively looking to tap the flourishing Indian startup ecosystem in consumer products segment.

Recently, global consumer goods company, Unilever, has invested in Pureplay Skin Sciences (India) Pvt Ltd, which sells the Plum brand of of skincare products, through its venture capital and private equity arm, Unilever Ventures.

Last year, Colgate-Palmolive invested in online men’s grooming firm Bombay Shaving Company. In June last year, Bangalore-based liquor company, United Spirits Ltd had invested ₹27 Crore in HipBar, a Bengaluru-based online drinks ordering platform. Home-grown FMCG company Marico has acquired Ahmedabad-based men’s grooming start-up Beardo.

The FMCG (Fast-Moving Consumer Goods) sector is the fourth largest sector in India and has grown from US$31.6 billion in 2011 to US$52.8 billion in 2017-18. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 27.9% to reach US$ 103.7 billion by 2020.

Apoorv Ranjan Sharma, founder of Venture Catalyst, said, "The alliance with Haldiram’s sets a benchmark for other enterprises to enter into active collaborations that look to empower the start-up ecosystem. The Haldiram’s growth story and the way in which they have built an empire from the ground up — this is the ideal example that we want to set for the enterprises that are a part of the VCats set-up right now.”

Anuj Golecha, co-founder of Venture Catalyst, added that the association with Haldiram’s will give the startups in Venture Catalyst's consumer products goods portfolio an immense boost with knowledge, confidence and resource opportunities to achieve robust growth and scale quickly.

It may also be recalled that in this month, a consumer product startup, Azah, raised $200,000 in the seed-round funding from a group of angel investors