Blackstone Eyes 20% Stake In Haldiram’s Amid Valuation Standoff

Blackstone has shifted its focus from acquiring a majority stake in Haldiram’s snacks business to negotiating a 20 per cent stake purchase, valuing the company at USD 8 billion, Reuters reported. However, a disagreement over valuation persists, with Haldiram seeking a USD 12 billion valuation.

The New York-based private equity giant was initially exploring a controlling stake, potentially up to 76 per cent, valuing the snacks maker at Rs 70,000 crore. Talks involved Blackstone and its global partners, including Abu Dhabi Investment Authority and Singapore’s GIC, which support Blackstone’s global funds.

Reports suggest the Agarwal family, which owns Haldiram’s, is also contemplating an IPO to raise funds, targeting a valuation of USD 8-8.5 billion. Competing bids have reportedly been submitted by Bain and Co. and Temasek Holdings.

This potential deal follows the 2023 merger of Haldiram’s Nagpur and Delhi factions, approved by the Competition Commission of India, consolidating the brand under one umbrella.

Haldiram’s, a household name in India, offers namkeen snacks, sweets, ready-to-eat meals, and frozen foods. Its products are not only popular domestically but also exported to Europe and the US.

The company’s financials have shown robust growth, with operating income rising by 34 per cent to Rs 1,812 crore in FY23, up from Rs 1,350 crore in FY22, according to an Icra report released in December 2023. This growth underscores Haldiram’s increasing market strength and sales momentum.