Haldiram’s The Quintessential Brand That Every International Player Wants A Bite Off. Why This Indian Brand Should Stay Within Indian Shores?

There’s a reason why no chai session, impromptu guest visit, or cozy family evening feels complete without Haldiram’s—the silent participant in these quintessentially Indian moments.

From its modest beginnings as a sweet shop in Bikaner in 1937, Haldiram’s has grown into a global giant, reigning as India’s largest snack company. With products gracing over seven million outlets worldwide and holding a commanding 13% of India’s savory snack market, Haldiram’s isn’t just a brand—it’s an emotion.

Haldiram’s journey is a story of grit, growth, and a commitment to quality. It began with the now-legendary Bikaneri bhujia and evolved into a snack empire that’s synonymous with trust and tradition. Today, it’s not just a household name in India but also a global favorite, with its reach spanning over 180 countries.

The Global Scramble for a Slice

The world has taken notice, and the race is on. In the most recent development, Alpha Wave Global, a US-based investment manager and an offshoot of Tiger Global, has made a billion-dollar binding offer to snag a piece of Haldiram’s. Thus, joining the race are heavyweights like Blackstone, Bain Capital, GIC of Singapore, and Temasek, each vying for a stake in what could become one of India’s largest private-equity trades.

The numbers are staggering. With bidders valuing Haldiram’s at ₹75,000–₹80,000 crore ($8.8–$9.4 billion), this isn’t just another deal—it could become one of India’s largest private-equity trades ever.

Some investors are even eyeing stakes of up to 25%, with talks of co-control and board rights.

Why the Frenzy?

Haldiram’s financial performance has been stellar, particularly in the last fiscal year. With industry multiples backing its valuation and a reputation for consistent profitability, the brand is a dream asset for any investor.

For Alpha Wave Global, this marks a shift from its usual focus on tech companies like Swiggy, Ola, and Dream11. Meanwhile, Blackstone and Bain Capital, with their year-long intermittent negotiations, are pushing for a larger stake and even management control.

A Reluctant Promoter Family

Despite the frenzy, the Agarwal family remains cautious. Past negotiations with big names like Kellogg’s, PepsiCo, and Tata Consumer Products have fallen through due to shifting stances and valuation disagreements. While financial gain is tempting, letting go of a controlling stake in a brand so deeply tied to the family’s identity is a tough decision.

The Big Question. Control vs. Growth

The Agarwal family, the promoters behind Haldiram’s, has been deliberating on whether to sell a controlling interest or opt for a minority stake sale. While initial plans leaned towards the former, recent considerations suggest that retaining a majority share while merging the Delhi and Nagpur factions may better preserve the brand’s identity.

This merger, approved by the Competition Commission of India (CCI) in April and currently under the National Company Law Tribunal (NCLT) process, marks a significant restructuring. Post-merger, the Delhi faction will control 56%, with the Nagpur branch holding the rest, leaving the eastern branch outside this unification.

The Numbers Speak

In FY24, the combined Haldiram Nagpur and Delhi businesses reported revenues of ₹12,800 crore, with an EBITDA of ₹2,580 crore and profits hovering between ₹1,350–1,400 crore. These robust financials underline why the brand remains a hot commodity for private-equity (PE) investors.

Private-equity bidders are eyeing the business at valuations nearing $10–11 billion, but they seek more than just a financial stake. A potential IPO within the next 12–24 months is also on the cards, which could offer investors a lucrative exit strategy. However, the Agarwal family’s long-standing indecision remains a stumbling block.

May 2023 saw a significant move with the induction of a professional CEO—the first in Haldiram’s history. This shift reflects the evolving vision of the younger generation stepping into leadership roles. By aligning with modern corporate practices, Haldiram’s aims to position itself as not just a family-run empire but also a globally competitive brand.

The IPO Dilemma

One of the options under consideration is listing Haldiram’s on the stock exchange. By selling a small stake now and capitalizing on the “public market premium” later, the family could achieve its desired valuation of ₹93,500 crore ($11 billion). An IPO would also allow the brand to maintain its roots while unlocking new avenues for growth.

However, potential investors are cautious. Writing a large cheque without clarity on management rights, value creation, and liquidity isn’t an attractive proposition. For Haldiram’s, the road ahead requires balancing family legacy with investor expectations.

Haldiram’s, From Bhujia to Global Phenomenon

Haldiram’s is more than just a snack brand; it’s a veritable treasure trove of flavors. With over 500 products in its lineup, you’re spoiled for choice. From crispy namkeens and melt-in-your-mouth sweets to wholesome cookies and ready-to-eat meals that make life so much easier, Haldiram’s has something for everyone. Of course, their bhujia remains the undisputed star—a snack that has turned into a tradition for many.

Think Haldiram’s is only big in India? Think again. This brand has conquered the world, quite literally. With its products available in over 180 countries, including the United States, Singapore, and the UK, it’s safe to say Haldiram’s has become a global ambassador of Indian flavors.

Not only does Haldiram’s excel in packaged food, but they also run around 150 restaurants!

Haldiram’s also knows how to diversify like a pro. With sub-brands like Minute Khana (ready-to-eat meals), Cup Shup (instant snacks), and Cookie Heaven (you guessed it, cookies), they’ve got every snack craving covered. And let’s not forget Cocobay, their indulgent chocolate range.

Growth That’s Hard to Ignore

Now, let’s talk numbers—over the past five years, Haldiram’s has clocked an impressive compound annual growth rate (CAGR) of 18% in revenue. For a brand rooted in tradition yet forward-looking, this kind of growth illustrates its ability to innovate and adapt while staying true to its essence.

Despite its dominance, Haldiram’s operates in a fragmented and competitive market. Euromonitor International places the brand’s share at nearly 13% of India’s $6.2-billion savory snack market, yet consumer preferences are rapidly evolving.

A November report by NielsenIQ highlighted a growing trend towards healthy snacking. With 63% of Indian consumers now prioritizing health-conscious options, “smart snacks” are outpacing traditional ones in value growth by 1.2 times.

For legacy brands like Haldiram’s, this shift presents both a challenge and an opportunity. Innovating within this space could be key to sustaining market leadership while appealing to a health-conscious generation.

Now the question that is haunting most Indian’s, should this iconic brand remain whithin Indian shores?

Haldiram’s is more than just a business; it’s a reflection of India’s rich culinary heritage and entrepreneurial spirit. Allowing majority foreign ownership could risk diluting its authenticity and eroding the very ethos that made it a global icon.

While foreign investment could accelerate growth and expand its footprint, there’s a fine line between scaling a legacy and selling it. For millions of Indians, Haldiram’s isn’t just a snack—it’s a part of their identity.

As the Agarwal family stands at a crossroads, their choices will shape not only its financial future but also its cultural identity. Will it embrace modernity through private-equity backing and an IPO, or will it hold firm to its familial roots, preserving the legacy built over nearly nine decades?

Haldiram’s represents more than profits and market share. It symbolizes India’s entrepreneurial spirit and its ability to evolve while staying connected to its origins. For a brand that’s been part of countless chai sessions and festive celebrations the next chapter promises to be as iconic as its past