Family pack: Haldiram's set for Delhi, Nagpur business merger

NAGPUR: After concluding year-long negotiations with global investment firms, Nagpur's Haldiram is finally close to a stake sale deal. The promoters will give up a 9% stake to Singapore's state-owned investment company, Temasek Holdings, at a valuation of Rs 84,000 crore. This will be alongside a family business reunion.

Nagpur-based Haldiram Foods and Delhi's Haldiram Snacks are run by two cousin branches of the Agrawal family. Both companies have completed formalities, and a formal seal on their merger is expected soon. A new entity, Haldiram Foods and Snacks, will be formed.

The companies' product range includes salted snacks, sweetmeat brands, retail outlets, and eateries. Haldiram has a major export market in almost every country with Indian immigrants, said sources. The basis of the valuation was the brand's reach, goodwill, and further prospects.

A valuation of Rs 84,000 crore has been derived, considering the two firms as a single business, said sources part of the deal. This also sets the background for an initial public offering (IPO) planned by the new entity. Sources said with the merger expected to conclude soon, an announcement on stake sale is expected in over a fortnight. Talks are also underway for giving up another 5%, apart from the 9% for which a deal has been almost sealed.

Earlier, Haldiram was also being wooed by US investment company Blackstone Inc, but the deal did not materialise. The promoters planned to give up a majority stake to an investor if a deal worked out. Later, it was internally decided to keep the majority stake within the promoter family.


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