Time to snack: PE firm eyes regional brands

Private equity firms have been snacking on the idea of regional snack brands in India. It started with Haldirams a year ago. Founded in 1937 in Bikaner, Rajasthan, Haldiram’s is possibly the largest of India’s snack manufacturers. The company sells bhujias, namkeens, and sweets. In March 2025, Singapore’s state-owned investment firm, Temasek, acquired a 10% stake in Haldirams for about USD one-billion.

According to Euromonitor International, Haldiram’s holds a 13% share of India’s savoury snack market. Following Temasek’s investment, Haldiram’s has attracted two other investors, Alpha Wave Global and International Holding Co. According to Reuters, the additional capital is aimed at aiding Haldiram’s expansion into the United States and the Middle East.

Then there is Lal Sweets, a Bengaluru-based company with Carnatic delicacies that uses Modified Atmosphere Packaging (MAP) to extend the shelf life of its products. In August 2024, Motilal Oswal Alternate Investment Advisors, a division of Motilal Oswal’s private equity, invested INR 330-crore to acquire a 25% stake in Lal Sweets.  The company offers products through stores, quick commerce platforms, e-commerce sites, and its website. It also has over 40 outlets at various airports.

Meanwhile, Indore’s Pushp, a leading spice brand in Central Asia, has broadened its reach to states such as Maharashtra, Rajasthan, and Uttar Pradesh. It has recorded a revenue growth of 25% CAGR over the past five years. In December 2023, Sixth Sense Ventures invested INR 100-crore through its fund SSIO-III. A report by The Hindu BusinessLine highlighted the attractiveness of the spices segment, citing its size, growth, margin profile, distribution moat, and sticky customer base. 

There are several factors that actually drive private equity interest in regional snack brands. They tend to be scalable, with a firm local footprint, established snack companies tend to have extremely loyal customers, and companies like Lal Sweets are modernising traditional sweets and giving them a modern value, appealing to both nostalgic customers and the younger generation. The integration of e-commerce platforms also enables regional brands to reach a broader audience, enhancing their market presence. 

Though prospects are promising, PE firms must evaluate the changes. Adhering to food safety standards can be complex. There was a blip in the USA in 2015 when the FDA rejected snacks from India, deeming the products unsafe due to pesticide presence. 

Also, insiders say, the snack industry is competitive. Numerous local and international players are vying for the market share. Consider: Prataap Snacks, known for its Yellow Diamond brand, has been a significant player in the Indian snack industry. The company sells over 12 million packets of snacks every day at prices as low as five rupees. In December 2024, a 72.8% stake acquisition was approved by Authum Investment and Infrastructure and investor Mahi Madhusuan. 

In September, the investors acquired a 46.85% stake from Peak XV Partners and announced an open offer for an additional 26%. According to the grapevine, ITC is reportedly considering a 47% stake in Prataap Foods. This would allow ITC to expand its footprint in regional markets where it currently faces rather tough competition.

Similarly, Advent International acquired a majority stake in DFM Foods, known for its CRAX brand, investing between USD 118-million  and USD 130-million. Jashvik Capital has picked up a minority stake in Jabsons Foods, an ethnic snacks maker, indicating a trend of PE firms supporting regional brands with strong local identities.

The WhatPackaging? View: The Indian snack market is poised to notch up INR 1,01,811-crore by 2033, which is why investors are seizing a delicious opportunity. Food is not just bite-sized anymore; it’s crunchy and munchy.