Temasek confirms investment in Haldiram Snacks

New Delhi: Snacking and sweets company Haldiram Snacks Food Pvt. Ltd has entered into an agreement with Singapore-headquartered global investment firm Temasek, the deal's financial advisor said on Sunday.

PwC Investment Banking team acted as the exclusive financial advisor to the transaction, while Khaitan & Co. acted as the legal advisor. Temasek agreed to acquire a 10% stake for ₹8,500 crore in Haldiram Snacks Food Pvt. Ltd, Mint reported on 11, citing people aware of the matter. The deal values the business at $10 billion or ₹85,000 crore.

The agreement will see Temasek acquire an equity stake from existing shareholders of Haldirams. This transaction positions Haldirams to continue its ambitious expansion plans both in India and internationally, solidifying its presence in an increasingly competitive market, according to statement issued by PwC on Sunday. Financial details of the transaction were not revealed.

Also read | Temasek’s pricey bite of Haldiram is a risky bet on India’s consumer market

“We are thrilled to welcome Temasek as an investor and partner in Haldirams. We look forward to working with them to harness the value they bring from their experience in the consumer space to accelerate our growth and strengthen our ability to meet evolving consumer demands. We also extend our gratitude to PwC and Khaitan & Co for their dedicated support during this transaction,” a spokesperson for Haldirams group said.

The transaction, which is subject to customary regulatory approvals, is expected to close soon.

Sanjeev Krishan, chairperson, PwC in India, said, “Our decade-long collaboration with the Haldirams exemplifies this commitment. Over the years, we have advised them on various strategic planning and decision making. This transaction is not only the largest private equity consumer deal in India, but also a reflection of domestic businesses that continue to elevate India’s positioning on the global stage. We thank the Haldirams family for trusting us and giving this opportunity.”

Also read | Haldiram's promoters now offer a smaller bite to investors

The announcement caps an over year-long period of negotiations for one of India's largest PE deals in the segment by valuation. The precursor to the deal saw the merger of the Nagpur and Delhi factions of the business. The groups demerged the fast-moving consumer goods (FMCG) business of HSPL and Haldiram Foods International Pvt Ltd (HFIPL)--part of the Haldiram Nagpur group) into a newly incorporated entity Haldiram Snacks Foods Pvt. Ltd (HSFPL). Manohar Agarwal and Madhu Sudan Agarwal primarily ran the Delhi business. The Nagpur part of the family was led by Kamalkumar Shivkisan Agrawal, grandsons of Haldiram founder Ganga Bhishen Agarwal, who started the business in 1937.

Existing shareholders of HSPL and HFIPL hold 56% and 44%, respectively, in the new entity. Temasek is a global investment company headquartered in Singapore, with a net portfolio value of $288 billion as of 31 March 2024.

J. Sagar Associates were advisors to Temasek Holdings.