'Not engaged in any discussions': Haldiram’s denies report of 51% stake sale to Tata Consumer

Family-run snack making giant Haldiram's has officially denied that it is considering a 51 per cent stake sale to Tata Group’s consumer arm. On Wednesday, Reuters reported that Tata Consumer Products is looking to buy at least 51 per cent stake in Haldirams at a valuation of around $10 billion. 

It was reported that Haldiram had also been in talks with Bain for the sale of a 10 per cent stake in the company. Tata Group would have invested more than Rs 40,000 crore for a 51 per cent stake in Haldiram's at this valuation. 

Haldiram's management has stated that they are not in a discussion with Tata Group about a takeover. "We categorically deny recent reports of a 51 per cent stake sale and wish to clarify that we are not engaged in any discussions with Tata Consumer Products," a company statement said.

Tata Consumer Products, which owns UK tea company Tetley, has a partnership with Starbucks in India. Tata Consumer Products had revenue of $1.7 billion in the last financial year. 

Haldiram's, which is popular for its sweets and savouries, started its operations in 1937. It forayed into the Quick-Service Restaurant (QSR) segment in recent years. Haldiram's has around 150 restaurants selling local food, sweets and western cuisine. The business is spread over three major hubs—Delhi-based Haldiram Snacks, Nagpur-headquartered Haldiram Foods International and Kolkata-based Haldiram Bhujiawala—led by different members of the Agarwal family.

According to Euromonitor International, Haldiram's has nearly a 13 per cent share in India's snack market which is almost equal to Lay's chips. Haldiram's had revenue of at least $981 million in the financial year ended March 2022. It has multiple registered companies in the country.

Haldiram's Chairman Manohar Lal Agrawal last year said that the company wanted to attract private equity investors and debut on the stock market in two to three years.

In 2022, CNBC TV-18 reported that the three brothers who run Haldiram’s in Delhi and Nagpur have decided to merge their operations to create one snacking major. 

"The merger is part of a plan to file for an initial public offering (IPO) in a bid to debut on Dalal Street in the next 18 months, as per people in the know," the CNBC TV-18 report said.

Earlier in the day, Tata Consumer Products denied news reports that it was in talks to buy a stake in Haldiram's. Following which, the shares dropped 1.87 per cent to Rs 862.5 at 9.20 am. On Wednesday, the stock surged over 4 per cent after the report surfaced.

The shares closed at Rs 858.40, down by almost 2.5 per cent.

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