Tata Group’s consumer division is currently in talks to acquire a controlling stake of at least 51 per cent in the renowned Indian snack food manufacturer, Haldiram’s. However, as per reports, Tata is apprehensive about the requested $10 billion valuation, casting a shadow over the potential deal. If the deal goes through, the transaction would position the Indian conglomerate in direct competition with Pepsi and the retail giant Reliance Retail, led by billionaire Mukesh Ambani.
Haldiram’s, a well-known name in India, is also in discussions with private equity firms, including Bain Capital, about selling a 10 percent stake.
Tata Consumer Products, the owner of the UK tea firm Tetley and in partnership with Starbucks in India, is actively negotiating the stake acquisition
A spokesperson for Tata Consumer Products, according to Reuters, said it “does not comment on market speculation”.
Haldiram’s, a family-run business with origins dating back to a small shop founded in 1937, is famous for its crispy “bhujia” snack, which is available for as little as 10 rupees in local stores. It holds a nearly 13 percent share of India’s $6.2 billion savory snack market. Notably, Pepsi, known for its Lay’s chips, also commands a similar 13 percent share in the market.
(Inputs from Reuters)