Speculation about Tata Consumer and Haldiram's deal

As per market reports, FMCG company Tata Consumer Products may buy a stake in namkeen bhujia and sweets retail chain company Haldiram. If this deal transpires, then it will cause a major disruption in the white goods and FMCG sector.

As per Mathew Thomas on X (formerly Twitter), "A proposed deal could reshape India's snack food industry." Mathew Thomas said, "Haldiram's, which is a household name in India, is also talking with private equity firms including Bain Capital about the sale of a 10% stake."

Many market pundits concurred that if the news is true, then it will pit the Indian conglomerate directly against majors like Pepsi, Reliance Retail and ITC in the fiercely competitive Indian consumer market.

Haldiram's last known sales valuation was said to be Rs 7000 cr. Acquiring Haldirams could boost the fortunes of Tata Consumer because of the brand's clout and market outreach with its range of products which could complement Tata Consumer's existing portfolio. Meanwhile there is no clarity if the USD 10 billion deal is for the entire business of Haldiram's which included sweets and restaurants, or if it was only the snacks or retail consumer business.

Haldiram's is a family-owned enterprise and can trace its origins back to a tiny store which was founded in 1937. It is very popular because of its bhujia snack sold for as Rs 10 rupees in India's kirana stores. As per industry reports, it enjoys a 13% share of India's USD 6.2 billion savoury snack market.

Even as we were filing this story, Tata Consumer Products had issued a statement which said, "Don’t comment on speculation" about the company buying 51% stake in Haldiram's. The company's shares rose by 3% during the trade cycle in Mumbai after the news was reported by Reuters.