PepsiCo Wants Buy Stake in Haldiram: The growing popularity of Haldiram, which has its presence in almost 100 countries. Because of this popularity, foreign equity companies are eager to buy stake in it. After Temasek and Alpha Wave Global, now PepsiCo also wants to buy stake in Haldiram Snacks Food. These bidders are currently in detailed discussion with the Agarwal family. Bidders want to acquire 10-15% stake in Haldiram.
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PepsiCo Wants Buy Stake in Haldiram
The Times of India reported that senior officials at PepsiCo’s New York headquarters have recently begun discussions with members of the Agarwal family regarding acquiring the stake. However, these discussions are in the initial stages.Earlier, discussions were also held with Mondelez, Kellogg’s and Tata Consumer regarding stake sale, but these discussions ended without any agreement. Talks with former PepsiCo CEO Indra Nooyi were also unsuccessful.
Haldiram’s Revenue was Rs 12,800 Crore in Year 2024
Haldiram achieved revenue of Rs 12,800 crore in FY24. The company sells 500 types of snacks, namkeen, sweets, ready-to-eat and pre-mixed food items. The valuation of the company is expected to be between Rs 85,000-90,000 crore.
PepsiCo Wants Buy Stake in Haldiram: Snack Market 13% Share
According to Euromonitor International, Haldiram has about 13% share in India’s $6.2 billion snack market. Its snacks are also sold in foreign markets like Singapore and America.
The company has approximately 150 restaurants. It started with a small shop in 1937. PepsiCo is the leader in western snacks with 24% market share. In western snacks like chips and nachos, PepsiCo is the leader with 24% market share.
However, it has limited presence in traditional Indian snacks like namkeen, bhujia and chana chur.PepsiCo wants to strengthen itself in this segment through collaboration with Haldiram.
PepsiCo acquired Uncle Chips in 2000
PepsiCo had acquired Uncle Chips from Amrit Agro Limited in 2000. When its snacks division operated as Frito Lay. Uncle Chips now serves primarily Tier 2 and 3 markets as a value brand. The company launched Doritos Nachos in the western snacks category in 2016–17.
PepsiCo Wants Buy Stake in Haldiram: Haldiram Plans to Sell Minority Stake
Haldiram plans to sell only a minority stake and does not want to sell so much stake that the reins of the company go to someone else. Not only this, this is the first time that this almost 87 year old snacks giant Apni has considered selling its stake.
Well, this is not the first time that international investors have tried to buy stake in this giant company. Since 2016-17, there has been a demand to acquire a small stake in Haldiram.
Earlier too, global private equity firms like General Atlantic, Bain Capital, Capital International, TA Associates, Warburg Pincus and Every stone had tried to acquire stake.
India’s Fast Growing Snacks Market
Companies are also emphasizing on buying stake in Haldiram because by the year 2032, India’s snacks market is likely to almost double to Rs 95,521.8 crore. Therefore, being a major player in this market, all the companies are eager to tie up with Haldiram. Haldiram not only wants to sell its stake, but is also considering launching an initial public offering (IPO) this year.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗