Blackstone, the global private equity giant, is in advanced discussions to acquire a significant stake in Haldiram’s, the iconic Indian snack maker. The negotiations, which have been ongoing for several months, involve Blackstone and its consortium partners, Abu Dhabi Investment Authority and Singapore’s GIC.
However, differences over the valuation of the business have caused delays in finalising the deal, according to sources cited by Moneycontrol. The talks between Blackstone and the Agrawal family, who own Haldiram’s branches in Delhi and Nagpur, have recently gained momentum. A source close to the discussions stated, “There has been a lot of back and forth with the family members over the valuation of the business. Also, the family is not looking at giving away a 76 percent controlling stake, which the private equity investors wanted, and want to retain a larger share of the business.”
Initially, Blackstone sought to acquire up to a 76 percent stake in Haldiram’s, aiming for a controlling interest. However, some family members have expressed a preference for selling only a 51 percent stake. The current negotiations are now likely to result in a stake sale closer to 74 percent, as both parties seek a compromise that balances the family’s desire to retain significant control with the investors’ need for a substantial share Haldiram’s, a household name in India, has grown into a multi-billion-dollar enterprise known for its wide range of snacks and sweets.
The brand’s extensive reach and strong market presence make it an attractive investment for global investors looking to tap into India’s burgeoning consumer market. The valuation disputes highlight the complexities involved in such high-stake negotiations. For Blackstone and its consortium partners, securing a deal with Haldiram’s would represent a strategic investment in a rapidly growing sector. For the Agrawal family, the challenge lies in balancing the infusion of capital and expertise from global investors with maintaining control over the business they have built over decades.
Despite the delays, industry experts remain optimistic about the potential for a deal. The recent acceleration in talks suggests that both sides are keen to find a mutually beneficial agreement. A successful transaction could set a precedent for further investments in India’s food and beverage sector, which continues to attract interest from global investors. The ongoing negotiations between Blackstone and Haldiram’s reflect the broader trends in India’s economic landscape, where traditional family-owned businesses are increasingly engaging with global private equity firms. As the talks progress, the outcome will be closely watched by market observers and could signal a significant shift in the dynamics of India’s snack food industry.
