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Tata Group in High-Stakes talks to acquire majority stake in Haldiram's

Tata Group in High-Stakes talks to acquire majority stake in Haldiram's

The sources familiar with the matter have, however, revealed that Tata Group is hesitant regarding the proposed valuation of $10 billion. Haldiram's, an iconic household brand in India, is also exploring options for selling a 10% stake and has initiated discussions with private equity firms, including Bain Capital.

Tata Consumer Products, the entity overseeing brands like Tetley in the UK and Starbucks partnerships in India, is leading the negotiations for the stake acquisition.

While Tata Group's interest extends beyond a mere 51% stake, they have communicated to Haldiram's that the current valuation is considerably high. This potential acquisition represents an enticing opportunity for Tata, expanding its presence beyond its established reputation as a tea company. Haldiram's holds a substantial market share in the consumer goods sector, solidifying its appeal.

Notably, Haldiram's, a family-run enterprise with origins dating back to a modest shop founded in 1937, has garnered widespread recognition for its crispy "bhujia" snack, available at affordable prices in local mom-and-pop stores. The company has established a strong foothold, commanding approximately 13% of India's $6.2 billion savory snack market, according to Euromonitor International. In a parallel market segment, Pepsi, renowned for its Lay's chips, also holds a comparable market share.

The snack giant has expanded its global footprint, with its products being distributed in international markets such as Singapore and the United States. Additionally, the company operates around 150 restaurants, offering a diverse range of local delicacies, sweets, and Western cuisine.

The experts cite that if the potential transaction reaches a successful conclusion, it would mark a significant development as Tata Group would directly enter the competitive arena alongside industry giants such as Pepsi and Mukesh Ambani's Reliance Retail.

In response to these developments, a spokesperson for Tata Consumer Products declined to comment, adhering to the company's policy of not engaging in market speculation. Similarly, Krishan Kumar Chutani, Chief Executive of Haldiram's, and Bain Capital have refrained from offering official statements.


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