The agreement follows the signing of a term sheet by both the Agrawal family and Temasek, according to the media reports
In an effort to strengthen its portfolio in India, Singapore government-owned investment firm Temasek is closing in on finalising a deal to acquire a 10 per cent stake in Haldiram Snacks Foods, a fast-moving consumer goods (FMCG) player valued at USD 10 Billion, after extensive negotiations. The agreement follows the signing of a term sheet by both the Agrawal family and Temasek, according to the media reports.
Haldiram Snacks Foods is the combined entity of the FMCG businesses operated by the Delhi and Nagpur branches of the renowned Haldiram brand. The company has seen rapid growth, with FY23 revenues reaching Rs 6,375 crore, up from Rs 5,195 crore in FY22, and a 74 per cent increase in net profit to Rs 593 crore.
Temasek, which was competing against other private equity giants such as Bain Capital and Blackstone for a stake in the unlisted company, is now moving towards conducting due diligence. If successful, the deal will mark one of India’s largest investments, particularly as the company plans to go public within the next year.
The Agrawal family has merged the FMCG operations of the Delhi and Nagpur factions under the new entity Haldiram Snacks Foods (HSFPL). The move to list the company comes as part of their strategy to capitalize on the burgeoning IPO market in India.
Temasek, which is targeting a USD 10 billion investment in India by 2027, views the country’s healthcare, consumer products, and IT sectors as key investment themes. Its total exposure to India would rise to USD 47 billion, excluding investments by its subsidiaries.
With growing export potential and a rapidly expanding market, Haldiram’s products, known for their range of traditional Indian snacks, are expected to see further global reach, making this acquisition even more strategic for Temasek.
