Haldiram’s is in discussions to purchase a controlling interest in listed competition Prataap Snacks for USD 350 million to strengthen its foothold in the potato chip industry, news agency Reuters reported.
Prataap Snacks shares in Mumbai jumped about 13 per cent to their highest levels since 2018 after the news, before paring some gains to close 9.7 per cent higher.
The discussions are in their early stages and a valuation has yet to be determined, although it may be higher than Prataap’s stock price.
Haldiram’s is looking into a controlling interest of at least 51 per cent, however, no final amount has been agreed, the report said.
Prataap is best known for its Yellow Diamond brand of chips, which competes with Pepsi’s Lay’s and other snack manufacturers in a market where small, unorganised food merchants continue to dominate the fried chip category.
Venture capital firm Peak XV Partners, formerly known as Sequoia Capital India, owns around 47 per cent of Prataap Snacks and intends to fully exit its stake in Prataap, it said.
Prataap made its stock market debut in 2017 and reported yearly revenues of around USD 200 million last year. It claims to sell over 12 million packets of its salty snacks everyday, at prices as low as 5 rupees.
Prataap has 14 manufacturing plants across nine Indian states.
