US based Blackstone eyes 20% stake in Haldiram’s at over Rs 65,500 Cr valuation

In May 2024, reports said that Blackstone was targeting to acquire a 75% stake in Haldiram’s, the popular snack business in India.

But now those talks fell through — and Haldiram’s didn’t want to give up a majority stake.

According to Moneycontrol, Blackstone is now in fresh talks with the snack business and is eyeing to purchase a 20% stake at a valuation of $8 billion. But there’s a disagreement in terms of the valuation.

While Blackstone has put in a lot of effort for this deal and aims to close it at $8 billion, Haldiram’s believes a valuation of $12 billion is suitable for them.

Haldiram’s Market Presence and Growing Demand

As per Euromonitor International estimates, Haldiram’s eats up a share of approximately 13% of India’s $6.2 billion savoury snacks market. It also has 150+ restaurants across the country.

Moneycontrol also reports that sources have told Reuters that not just Blackstone, but other foreign investors are also looking to acquire minority stakes in the business. They are Bain Capital, Singapore state investor Temasek, and Abu Dhabi Investment Authority.

Last year, Tata Group was also discussing acquiring a majority stake in Haldiram’s, but the talks fell through.

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Haldiram’s Legacy: From Bikaner to a Nationwide Presence

Haldiram’s was founded in 1937 by Ganga Bishan Agarwal. He started selling Indian sweets and snacks, especially bhujiya, from a small shop in Bikaner, a city in western Rajasthan. His sons and grandsons continued the legacy and then expanded Haldiram’s into Kolkata, Delhi, and Nagpur in 1980.

Later, the family business was divided into three entities and began to be operated by different sets of the Agarwal family:

1. Haldiram’s (Nagpur and Delhi)

2. Haldiram’s Bhujiawala (Kolkata)

3. Haldiram’s Prabhuji (Kolkata)

Financial Performance and Growth

According to the Economic Times, Haldiram’s estimated revenue for FY24 was Rs 14,500 crore with an EBITDA between Rs 2,300 to Rs 2,500 crore. In the last five years, the business witnessed a CAGR of 18% in revenue.

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