Singapore’s sovereign wealth fund Temasek Holdings has sought approval from the Competition Commission of India (CCI) to acquire a 10 per cent stake in Haldiram Snacks Food.
Temasek will acquire a stake in India’s largest packed snack and sweets company and restaurant operator through its arm Jongsong Investments Pte.
“The proposed transaction entails the acquisition of less than 10 per cent of the issued and paid-up equity share capital of the target (Haldiram Snacks Food Pvt Ltd).
“The...transaction is in the nature of an acquisition of shares, voting rights and falls under section 5 of the Competition Act, 2002,” said a notice filed with the CCI on March 20.
In its submission to the CCI, the parties (Jongsong Investments and Haldiram Snacks Foods) asserted that the proposed transaction does not give rise to any competition law concerns irrespective of the manner in which the markets are defined.
However, to assist the CCI in its assessment, the relevant markets may be considered as the broader market for the manufacturing and the sale of packaged food products in India, they added.
Additionally, narrower markets may be identified within this segment, including the manufacturing and sale of snacks, sweets, ready-to-eat products, dairy products, bakery products, chocolates, and non-carbonated ready-to-drink beverages.
According to industry sources, Temasek will acquire the stake at a valuation of $10 billion. The Agarwal family, promoters of Haldiram Snacks Food, may rope in another investor. The company had a revenue of over ₹12,500 crore in FY24.
The agreement with Temasek came after months of negotiations as several PE firms, including Blackstone, Alpha Wave Global and Bain Capital-led consortium, were in the race to pick up a stake in Haldiram Snacks Food.
The Agarwal family may also opt for the IPO route next year to capitalise on India’s buoyant stock market.
Earlier, the promoters were intending to divest a larger portion. However, they have decided to offload a minority stake only. This cash infusion will help Haldiram Snacks Food to fund its expansion plans.
