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Tata Group's Consumer Unit in Talks to Acquire Majority Stake in Haldiram's

New Delhi - Tata Group's consumer unit is reportedly engaged in discussions to acquire a minimum of 51% of the renowned snack food manufacturer, Haldiram's. However, sources indicate that Tata is hesitant about the $10 billion valuation being sought for the deal. Should these negotiations reach a successful conclusion, Tata would find itself in direct competition with industry giants like Pepsi and Mukesh Ambani's Reliance Retail.


Picture: Kumaon Jagran

Haldiram's, a household name across India, is also exploring the possibility of selling a 10% stake to private equity firms, including Bain Capital. Tata Consumer Products, the division responsible for this potential acquisition, is currently negotiating the stake purchase, according to insiders familiar with the matter.

Although Tata is interested in acquiring more than 51% of Haldiram's, it has expressed concerns regarding the high valuation requested by the snack food company. Nevertheless, the acquisition represents an attractive opportunity for Tata, which is sometimes regarded primarily as a tea company. Haldiram's, on the other hand, is a significant player in the consumer goods sector and commands a substantial market share.

While the sources have chosen to remain anonymous, a spokesperson for Tata Consumer Products has refrained from commenting on market speculation. Similarly, Haldiram's Chief Executive Krishan Kumar Chutani and Bain Capital have declined to offer any official statements on the matter.

Haldiram's, a family-run business with roots dating back to a small shop established in 1937, is renowned for its crispy "bhujia" snacks, priced as affordably as 10 rupees and available at local mom-and-pop stores. The company enjoys a market share of nearly 13% in India's $6.2 billion savory snack market, as reported by Euromonitor International. Pepsi, renowned for its Lay's chips, also claims a similar market share.

Haldiram's has expanded its reach beyond India, with its snacks being sold in overseas markets such as Singapore and the United States. Additionally, the company operates approximately 150 restaurants offering a diverse range of local and international cuisine, further solidifying its presence in the food industry.

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