Popular snack brand Haldiram has officially refused the recent reports regarding the sale of a 51 percent stake to Tata Group’s consumer arm. Tata consumers previously denied the report, which was initially revealed in the Reuters report. Following the clarification, Tata Consumer Products witnessed a decline of over 2.60 percent in its share price.
Haldiram’s issued a statement to address the matter asserting, We categorically deny recent reports of a 51% stake sale and wish to clarify that we are not engaged in any discussion in any discussion with Tata Consumer product
The original Reuters reports have suggested that Tata Group’s consumer unit was engaging in discussion to purchase a majority stake in Haldiram’s concerning about Rs 10 billion valuation sought by the snack manufacturer. Private equity firms, including Bain Capital, were also reportedly in talks with Haldiram regarding the sale of a 10% stake.
While the sources remained anonymous, a person witness of the discussion claimed that Tata was interested in acquiring more than 51 percent but found Haldiram’s asking price to be quite high.
Haldiram was founded in 1937, then was a small family-run business known for its crispy bhujia snack. It was quite affordable brand and was found in every mom’s kitchen across India.
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It has command over almost 13 persent of India’s 6.2 billion dollar savory snack market with rivalary of Pepsi’s lays chips.
Haldiram snacks are not only limited Indian market but aslo sold at the international markets, including Singapore and United States. The compay also operates over 150 resturants across the country with a vriety of local and western cusine.
