Temasek Backs Haldiram with ₹8,000 Crore Investment

Haldiram Snacks, a household name in India, is gearing up for a major investment move. Singapore-based Temasek Holdings is all set to acquire a 9% stake in the company for ₹8,000 crore, valuing the business at approximately ₹89,000 crore ($10 billion). This deal is expected to be a pre-IPO transaction, setting a benchmark valuation for the company ahead of a potential stock market listing.

The investment discussions started months ago, with several global firms showing interest. Initially, Haldiram explored selling a majority stake, but later opted to offer a smaller minority stake instead. With the definitive agreement expected soon, Temasek will become the lead investor with the largest minority holding.

However, the story does not end here. Haldiram is considering selling additional minority stakes beyond the 9% being picked up by Temasek. Global private equity firms Blackstone and Alpha Wave Global have previously shown interest, and there is even buzz about high-net-worth individuals (HNIs) participating in the deal.

Haldiram is a dominant player in India's snack market, with products ranging from traditional namkeens and sweets to biscuits, frozen food, and beverages. The brand also has a strong presence in international markets, including the US and Europe.

The company has also gone through an internal restructuring process. Earlier, a demerger plan was initiated between Haldiram Snacks Private Ltd (Delhi Group) and Haldiram Foods International Pvt Ltd (Nagpur Group). This led to the formation of a new entity, Haldiram Snacks Foods Private Ltd (HSFPL), with the Delhi group holding 56% and the Nagpur group holding 44%.

Meanwhile, Bikaji Foods International, a smaller listed competitor, has seen its stock rise 22.5% over the past year, and now has a market capitalization of ₹16,000 crore. This indicates strong investor interest in India’s snack food industry.

While Temasek has not officially commented, the deal signals growing investor confidence in India’s booming consumer sector. With this investment, Haldiram strengthens its position as a market leader while preparing for its next big move - a possible IPO.