Reports note that regional snack brands in the country are attracting investor interest as they have been growing at a faster pace than the bigger players
Along with private equity firms like TPG and Temasek, ITC and PepsiCo are in competition to acquire the 10 per cent stake in snack maker Balaji Wafers at a likely valuation of Rs 40,000 crore, as per media reports.
The reports noted that the discussions with the strategic investors are taking place and are in exploratory stages. PepsiCo is making its second attempt to acquire a stake in the company, which is a major player in western and central India. The reports added that PepsiCo wanted to buy a 49-51 per cent stake in the company earlier, but the discussions could not materialise.
Regional snack brands in the country are attracting investor interest as they have been growing at a faster pace than the bigger players. Investors like Alpha Wave Global, Singapore’s Temasek and IHC together acquired around 10 per cent stake in Haldiram Snacks Food in March.
On 31 March, Haldiram, a snack and food brand, confirmed selling its stake to International Holding Company (IHC) and Alpha Wave Global, as per the report, which added that Alpha Wave is a global investment company that focuses on private equity, private credit and public markets. On the other hand, IHC is an investment company.
Reports noted that PepsiCo, which has a strong presence in western snacks such as chips and nachos, has been lagging behind the local brands in the ethnic snack category. An alliance with Balaji would provide the United States’ snack foods and beverage multinational a crucial backend upside in cracking regional markets.
