Haldiram’s, India’s leading ethnic snacks company,  

Is set to sell an additional 5 percent stake for around 500 million dollars as part of its pre-IPO placement. 

This comes after Singapore-based Temasek secured a 10 percent stake in the company for 1 billion dollars, valuing Haldiram’s at 10 billion dollars. 

With multiple foreign buyers eyeing a stake in the company, the question is: is Haldiram’s shifting its base?

Temasek takes a ‘bite’ of haldiram's

In the Indian food market, there is one name that has not only endured but also thrived - Haldiram's. It all began in the modest town of Bikaner, Rajasthan, back in 1919. From these humble origins, Haldiram's has evolved into an internationally renowned brand, altering the perception of traditional Indian snacks and sweets. &nbsp;

Presently, Haldiram's is a brand that spans the globe, celebrating Indian flavours and culture. As Haldiram's charts a new path towards further expansion and a possible IPO. In this edition, we take a dive into the incredible business odyssey that brought them here. &nbsp;

Humble beginnings&nbsp;

The Haldiram's story commences in the city of Bikaner, Rajasthan, in 1919. A young boy named Ganga Bishan Agarwal, popularly known as Haldiram, found himself immersed in his father's Bhujia business. Bikaner had its own familiarity with Bhujia, a savoury snack crafted from chickpea flour or besan. But even in his youth, Haldiram displayed a spark of creativity that set him apart. He envisioned a unique twist to the traditional Bhujia, crafting a thinner version using moth flour instead of besan.&nbsp;

His experiment within his father's unassuming shop proved to be an instant hit. The distinct flavour and texture of his Bhujia resonated deeply with the people of Bikaner. This single innovation laid the foundation for what we know today as Haldiram's.&nbsp;

Haldiram later had three sons, Moolchand, Satyanarayan, and Rameshwarlal. These three sons, along with their sister Saraswati Devi, would be the ones to carry on the family legacy. &nbsp;

Growth and diversification&nbsp;

Haldiram's was not content with staying local. In the 1950s, Ganga Bishan Agarwal, accompanied by his sons Satyanarayan and Rameshwarlal, embarked on a journey that led them to the bustling city of Kolkata. It was there that they created the renowned brand "Haldiram Bhujiawala." Shiv Kishan, the eldest grandson of Haldiram, joined them in this venture.&nbsp;

While the younger sons managed the original Bikaner shop, the business in Kolkata experienced meteoric growth. They expanded beyond the traditional Bhujia, venturing into uncharted territories in the snack industry. This marked a pivotal chapter in Haldiram's journey - a phase of growth and diversification.&nbsp;

The period from the 1960s to the 1990s was marked by this rapid growth and transformation. Ganga Bishan Agarwal eventually returned to Bikaner, passing on the reins to his sons, Rameshwarlal and Satyanarayan. However, Satyanarayan chose to embark on his own entrepreneurial journey, creating "Haldiram &amp; Sons." While his efforts were commendable, he could not replicate the unprecedented success of his father.&nbsp;

Simultaneously, Rameshwarlal made a significant decision - he severed ties with his brother Moolchand. This move resulted in the separation of the Kolkata and Bikaner businesses, each charting its own unique path.&nbsp;

Family dynamics and business succession&nbsp;

The 1980s marked another significant milestone when Shiv Kishan Agarwal and his sister Saraswati ventured into Maharashtra, particularly Nagpur. There, they achieved remarkable success and expanded the reach of the brand.&nbsp;

Meanwhile, in 1984, Manoharlal and Madhusudan, Moolchand's youngest sons, travelled to New Delhi, the capital city of India, and established their business there. Their move catapulted the brand to national and international recognition, paving the way for Haldiram's to become a global phenomenon.&nbsp;

The Agarwal family's journey was marked by complex dynamics and competition, culminating in the separation of the businesses into independent entities. The businesses now operate as distinct entities, each with its unique identity. The Delhi unit, under Manoharlal and Madhusudan Agarwal, emerged as the revenue leader, generating close to 5,000 crore rupees ($600 million). The Nagpur entity, under Shiv Kishan Agarwal, followed closely with 4,000 crore rupees ($480 million), while Bikaner, led by Shiv Ratan Agarwal, amassed around 1,600 crore rupees ($192 million).&nbsp;

With the recent IPO of Bikaji, the three brothers are looking to merge their businesses and embark on their own initial public offering within the next year and a half. &nbsp;

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In the Indian food market, there is one name that has not only endured but also thrived - Haldiram's. It all began in the modest town of Bikaner, Rajasthan, back in 1919.

In the Indian food market, there is one name that has not only endured but also thrived - Haldiram's. It all began in the modest town of Bikaner, Rajasthan, back in 1919. From these humble origins, Haldiram's has evolved into an internationally renowned brand, altering the perception of traditional Indian snacks and sweets. Presently, Haldiram's is a brand that spans the globe, celebrating Indian flavours and culture. As Haldiram's charts a new path towards further expansion and a possible IPO. In this edition, we take a dive into the incredible business odyssey that brought them here. Humble beginnings The Haldiram's story commences in the city of Bikaner, Rajasthan, in 1919. A young boy named Ganga Bishan Agarwal, popularly known as Haldiram, found himself immersed in his father's Bhujia business. Bikaner had its own familiarity with Bhujia, a savoury snack crafted from chickpea flour or besan. But even in his youth, Haldiram displayed a spark of creativity that set him apart. He envisioned a unique twist to the traditional Bhujia, crafting a thinner version using moth flour instead of besan. His experiment within his father's unassuming shop proved to be an instant hit. The distinct flavour and texture of his Bhujia resonated deeply with the people of Bikaner. This single innovation laid the foundation for what we know today as Haldiram's. Haldiram later had three sons, Moolchand, Satyanarayan, and Rameshwarlal. These three sons, along with their sister Saraswati Devi, would be the ones to carry on the family legacy. Growth and diversification Haldiram's was not content with staying local. In the 1950s, Ganga Bishan Agarwal, accompanied by his sons Satyanarayan and Rameshwarlal, embarked on a journey that led them to the bustling city of Kolkata. It was there that they created the renowned brand "Haldiram Bhujiawala." Shiv Kishan, the eldest grandson of Haldiram, joined them in this venture. While the younger sons managed the original Bikaner shop, the business in Kolkata experienced meteoric growth. They expanded beyond the traditional Bhujia, venturing into uncharted territories in the snack industry. This marked a pivotal chapter in Haldiram's journey - a phase of growth and diversification. The period from the 1960s to the 1990s was marked by this rapid growth and transformation. Ganga Bishan Agarwal eventually returned to Bikaner, passing on the reins to his sons, Rameshwarlal and Satyanarayan. However, Satyanarayan chose to embark on his own entrepreneurial journey, creating "Haldiram & Sons." While his efforts were commendable, he could not replicate the unprecedented success of his father. Simultaneously, Rameshwarlal made a significant decision - he severed ties with his brother Moolchand. This move resulted in the separation of the Kolkata and Bikaner businesses, each charting its own unique path. Family dynamics and business succession The 1980s marked another significant milestone when Shiv Kishan Agarwal and his sister Saraswati ventured into Maharashtra, particularly Nagpur. There, they achieved remarkable success and expanded the reach of the brand. Meanwhile, in 1984, Manoharlal and Madhusudan, Moolchand's youngest sons, travelled to New Delhi, the capital city of India, and established their business there. Their move catapulted the brand to national and international recognition, paving the way for Haldiram's to become a global phenomenon. The Agarwal family's journey was marked by complex dynamics and competition, culminating in the separation of the businesses into independent entities. The businesses now operate as distinct entities, each with its unique identity. The Delhi unit, under Manoharlal and Madhusudan Agarwal, emerged as the revenue leader, generating close to 5,000 crore rupees ($600 million). The Nagpur entity, under Shiv Kishan Agarwal, followed closely with 4,000 crore rupees ($480 million), while Bikaner, led by Shiv Ratan Agarwal, amassed around 1,600 crore rupees ($192 million). With the recent IPO of Bikaji, the three brothers are looking to merge their businesses and embark on their own initial public offering within the next year and a half. WATCH WION LIVE HERE

Flashback Friday: Tracing the business odyssey of Haldiram's

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."

<h2>Tata Group also denies&nbsp;</h2>

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 a&nbsp;decline of over 2.60 per cent in its share price.

<h2>Report said Tata was unhappy with Haldiram's valuation&nbsp;</h2>

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.

<h2>Speculations rife of Haldiram's selling stake&nbsp;</h2>

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.

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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.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/more-than-400000-indians-waiting-for-green-card-wont-get-it-before-death-study-633040">More than 400,000 Indians waiting for Green Card won't get it before death: Study</a>

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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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.

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 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 a decline 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. Also read | India to emerge as new manufacturing centre in the world: Foxconn Chairman Liu 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. Also read | More than 400,000 Indians waiting for Green Card won't get it before death: Study 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. WATCH WION LIVE HERE

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

Tata Group's consumer unit is in talks to buy at least 51% of popular Indian snack food maker&nbsp;Haldiram's but is not comfortable with the $10 billion valuation sought, two people briefed on the matter said.

If successfully concluded, a deal would see the Indian conglomerate directly compete with Pepsi and billionaire Mukesh Ambani's Reliance Retail.

Haldiram's, a household name in India, is also talking with private equity firms including Bain Capital about the sale of a 10% stake, they said.

Tata Consumer Products, which owns UK tea company Tetley and has a partnership with Starbucks in India, has baulked at the $10 billion valuation given that&nbsp;Haldiram's annual revenue is around $1.5 billion, the sources said.

Tata Consumer shares surged and closed nearly 4% higher in Mumbai trade after Reuters reported news of the talks.

A third person with direct knowledge of the discussions said Tata wants to buy more than 51% but has told&nbsp;Haldiram's that its "ask is very high."

The potential acquisition represents an exciting opportunity for Tata, the person said, adding: "Tata (Consumer) is seen as a tea company.&nbsp;Haldiram's is huge in the consumer space and has a wide market share."

The sources spoke on condition of anonymity.

A spokesperson for Tata Consumer Products said it "does not comment on market speculation".&nbsp;Haldiram's Chief Executive Krishan Kumar Chutani and Bain declined to comment.

Family-run&nbsp;Haldiram's traces its origins back to a tiny shop founded in 1937 and is well-known for its crispy "bhujia" snack sold for as little as 10 rupees across mom-and-pop stores.

It has almost 13% share of India's $6.2 billion savoury snack market, according to Euromonitor International. Pepsi, famous for its Lay's chips, also has around 13%.

Haldiram's snacks are also sold in overseas markets like Singapore and the United States. The company has around 150 restaurants selling local food, sweets and western cuisine.

Purchasing&nbsp;Haldiram's would significantly expand Tata's consumer products reach.

"If you want to suddenly grow big in size, no one better to provide access than&nbsp;Haldiram's. No other brand attacks packaged food, and food services, with equal panache," said Ankur Bisen, head of consumer and retail at Indian consultancy Technopak.

Tata's consumer unit, which also sells salt, pulses and mineral water, had revenue of $1.7 billion in the past financial year. It is a relatively small part of the Tata Group, whose businesses span autos, aviation and hotels and which had combined revenue last year of some $144 billion.

Haldiram's Chairman Manohar Lal Agrawal last year told CNBC TV18 in an interview the company wanted to attract private equity investors and debut on the stock market in 2-3 years.

Haldiram's - which has multiple registered companies in the country - had revenue of at least $981 million in the financial year ended March 2022, according to regulatory filings. The first two sources, however, said its revenue is now close to $1.5 billion and annual operating profit is around $200 million.

The $10 billion valuation sought by&nbsp;Haldiram's for the deal translates to 6.6 times its annual revenue of $1.5 billion, sources said.

Haldiram's smaller listed rival in India, Bikaji Foods International, has a market capitalisation of $1.5 billion, six times its annual revenue. Shares in Bikaji also rose on Wednesday, climbing around 3 per cent&nbsp;during trade. 
&nbsp;

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Tata Group's consumer unit is in talks to buy at least 51% of popular Indian snack food maker Haldiram's but is not comfortable with the $10 billion valuation sought, two people briefed on the matter said.

Tata Group's consumer unit is in talks to buy at least 51% of popular Indian snack food maker Haldiram's but is not comfortable with the $10 billion valuation sought, two people briefed on the matter said. If successfully concluded, a deal would see the Indian conglomerate directly compete with Pepsi and billionaire Mukesh Ambani's Reliance Retail. Haldiram's, a household name in India, is also talking with private equity firms including Bain Capital about the sale of a 10% stake, they said. Tata Consumer Products, which owns UK tea company Tetley and has a partnership with Starbucks in India, has baulked at the $10 billion valuation given that Haldiram's annual revenue is around $1.5 billion, the sources said. Tata Consumer shares surged and closed nearly 4% higher in Mumbai trade after Reuters reported news of the talks. A third person with direct knowledge of the discussions said Tata wants to buy more than 51% but has told Haldiram's that its "ask is very high." The potential acquisition represents an exciting opportunity for Tata, the person said, adding: "Tata (Consumer) is seen as a tea company. Haldiram's is huge in the consumer space and has a wide market share." The sources spoke on condition of anonymity. A spokesperson for Tata Consumer Products said it "does not comment on market speculation". Haldiram's Chief Executive Krishan Kumar Chutani and Bain declined to comment. Family-run Haldiram's traces its origins back to a tiny shop founded in 1937 and is well-known for its crispy "bhujia" snack sold for as little as 10 rupees across mom-and-pop stores. It has almost 13% share of India's $6.2 billion savoury snack market, according to Euromonitor International. Pepsi, famous for its Lay's chips, also has around 13%. Haldiram's snacks are also sold in overseas markets like Singapore and the United States. The company has around 150 restaurants selling local food, sweets and western cuisine. Purchasing Haldiram's would significantly expand Tata's consumer products reach. "If you want to suddenly grow big in size, no one better to provide access than Haldiram's. No other brand attacks packaged food, and food services, with equal panache," said Ankur Bisen, head of consumer and retail at Indian consultancy Technopak. Tata's consumer unit, which also sells salt, pulses and mineral water, had revenue of $1.7 billion in the past financial year. It is a relatively small part of the Tata Group, whose businesses span autos, aviation and hotels and which had combined revenue last year of some $144 billion. Haldiram's Chairman Manohar Lal Agrawal last year told CNBC TV18 in an interview the company wanted to attract private equity investors and debut on the stock market in 2-3 years. Haldiram's - which has multiple registered companies in the country - had revenue of at least $981 million in the financial year ended March 2022, according to regulatory filings. The first two sources, however, said its revenue is now close to $1.5 billion and annual operating profit is around $200 million. The $10 billion valuation sought by Haldiram's for the deal translates to 6.6 times its annual revenue of $1.5 billion, sources said. Haldiram's smaller listed rival in India, Bikaji Foods International, has a market capitalisation of $1.5 billion, six times its annual revenue. Shares in Bikaji also rose on Wednesday, climbing around 3 per cent during trade. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India's Tata seeks control of Haldiram's, snack maker wants $10 billion valuation: Report

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