Haldiram’s denies reports of selling majority stake to Tata Group

Popular Indian snack brand Haldiram’s joined Tata Consumer Products to deny a report by the Reuters news agency that it is considering selling its 51 per cent stake to the Indian conglomerate.

In a statement, Haldiram's said, "We categorically deny recent reports of a 51 per cent stake sale and wish to clarify that we are not engaged in any discussions with Tata Consumer Products."

Tata Group also denies

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The clarification came hours after Tata Consumer Products (TCPL) denied reports of buying a majority stake in the popular snack brand.

"The company is not in negotiations as reported" to acquire Haldiram's, TCPL said in a regulatory filing.

The filing was in response to a clarification sought by the NSE and the BSE regarding the reports.

"Tata Consumer Products does not comment on market speculation," a company spokesperson said earlier in the day.

Following the clarification, Tata Consumer Products witnessed adecline of over 2.60 per cent in its share price.

Report said Tata was unhappy with Haldiram's valuation

The Reuters report had initially claimed that Tata Group's consumer unit was engaging in discussions to purchase a majority stake in Haldiram's and that it expressed concerns about the $10 billion valuation sought by the snack manufacturer.

The report quoted anonymous sources with direct knowledge of the discussions to substantiate its claim. It further said that Tata found Haldiram's asking price to be quite high.

Speculations rife of Haldiram's selling stake

Meanwhile, there are speculations that several private equity firms, including Bain Capital, are also in talks with Haldiram's regarding the sale of a 10 per cent stake.

Haldiram's is a family-run business founded in a small shop in 1937. It has dominated the Indian markets with lip-smacking snacks that are widely available in mom-and-pop stores across India.

It commands an almost 13 per cent share of India's $6.2 billion savoury snack market, rivalling Pepsi's Lay's chips.

Haldiram's snacks are also sold in international markets, including Singapore and the United States. The company operates approximately 150 restaurants that serve a variety of local and Western cuisines, as well as sweets.

TCPL, on the other hand, owns brands such as Tata Salt, Tata Tea, Tetley, Tata Coffee, Tata Soulfull and Eight O'clock in the tea, coffee and beverages segment and Himalayan, Gluco+ in the liquid beverages.

Reportedly, the company is planning to expand in the food and beverages sector.

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