Alpha Wave and Two Other Investor groups are eying a stake in Haldiram’s at $9 Billion valuation.
US-based investment management firm Alpha Wave Global has reportedly offered over $1 billion to acquire a minority stake in Haldiram’s Snacks Food, India’s largest snack and convenience food company. The deal, if successful, could become one of the largest private equity transactions in India, as reported by The Economic Times.
Haldiram: Competing Bidders
In addition to Alpha Wave, two major investors are trying for a 15-20% stake in Haldiram’s are Blackstone, along with Singapore’s GIC and the Abu Dhabi Investment Authority (ADIA) and a consortium led by Bain Capital in partnership with Temasek.
The bids value Haldiram’s between ₹75,000 crore and ₹80,000 crore ($8.8 billion to $9.4 billion), underscoring the company’s robust financial standing and strong market presence.
Haldiram’s Strategic Moves
The Agarwal family, founders of Haldiram’s, initially considered selling a controlling stake in the 87-year-old business but shifted focus to divesting a minority stake. This follows the merger of Haldiram’s Delhi and Nagpur factions, approved by the National Company Law Tribunal (NCLT) and Competition Commission of India (CCI) earlier this year.
Post-merger, the Delhi faction, led by Manohar and Madhu Sudan Agarwal, will hold 56%, while the Nagpur faction, headed by Kamalkumar Shivkisan Agrawal, will control 44%.
Haldiram’s Potential IPO
The Agarwal family is contemplating a public listing after the stake sale, targeting a valuation of ₹93,500 crore ($11 billion) through an IPO within 12-24 months. This aligns with private equity bidders’ monetization strategies, further heightening the deal’s appeal.
Alpha Wave’s Broader Interests
Alpha Wave, renowned for investments in Indian tech companies like Swiggy, Dream11, and Lenskart, is diversifying into consumer goods, with recent stakes in wellness brands like VLCC. Its interest in Haldiram’s signals a strategic expansion into India’s thriving snack market.
Challenges and Market Dynamics
While Haldiram’s leads India’s $6.2 billion savoury snack market, traditional snack companies face mounting competition from the “smart snacking” segment, which includes healthier options like Greek yogurt and fortified biscuits. NielsenIQ reports these healthier snacks are growing 1.2 times faster, fueled by rising health consciousness among consumers.
Haldiram Past Negotiations
Previous talks with firms such as General Atlantic, TA Associates, and Warburg Pincus, as well as with Tata Consumer Products, Kellogg’s, and PepsiCo, were hindered by valuation disagreements and operational indecision from the Agarwal family.
The ongoing discussions emphasize clear operational frameworks and valuation agreements. If finalized, this landmark deal could redefine India’s snack and convenience food industry, setting the stage for Haldiram’s future growth trajectory.