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Blackstone Inc. is leading the race to acquire a controlling stake in Haldiram's, a prominent Indian snack food company, with a potential investment of Rs 40,000 crore. This ambitious acquisition, expected to involve a 51% stake, represents a significant entry for Blackstone into the lucrative Indian snacks market. The private equity firm is part of an investor consortium that includes Singapore's GIC and the Abu Dhabi Investment Authority. According to sources familiar with the negotiations, Blackstone holds the majority stake in the consortium.
The negotiations have reportedly overcome several contentious issues, including the ownership of Haldiram's restaurant chain and brand licensing. The Haldiram family will retain control over restaurant operations and brand rights, securing their legacy in the company's identity. The family will also receive an annual royalty for using the Haldiram's brand under the proposed agreement.
The consortium's offer of Rs 40,000 crore represents a valuation of Haldiram's between Rs 70,000 and 78,000 crore. The final offer will be contingent on the results of due diligence conducted by EY, the accounting firm appointed by Blackstone. The deal, if successful, would give Blackstone control over Haldiram's product business while granting them a perpetual license to use the brand, solidifying their position in the Indian snack market.
In response to inquiries about the deal, a spokesperson for Blackstone stated that the firm submitted an initial proposal in May 2024 but that discussions stalled due to valuation differences. This statement suggests that the negotiations were complex and required significant adjustments to reach a mutually agreeable agreement. The final outcome of the acquisition remains uncertain, but it highlights the growing interest of private equity firms in expanding their presence in the Indian consumer goods sector.
Source: This company is leading race to acquire Haldiram's, ready to invest Rs 40000 crore...