Singapore’s state investment firm Temasek has acquired a nearly 10% stake in Haldiram’s, one of India’s most well-known snack brands, for $1 billion, valuing the company at approximately $10 billion, according to sources familiar with the deal.
A Strategic Move into India’s Booming FMCG Sector
The deal, signed after months of negotiation, is seen as a major bet on India’s $6.2 billion savoury snacks market, which is witnessing rapid growth. One of the sources said that Temasek views Haldiram’s as a “prized asset” that will bolster its investments in India’s consumer sector, where it already holds stakes in Manipal Hospitals and Devyani International, the operator of KFC and Pizza Hut in India.
The move comes just days after private equity giant Blackstone pulled out of talks to acquire a minority stake in Haldiram’s, citing concerns over the company’s valuation.
Haldiram’s: An Iconic Indian Snack Brand
Founded in 1937 as a small shop in Bikaner, Rajasthan, Haldiram’s has since expanded into a household name across India and international markets. It holds a 13% market share in India’s savoury snacks segment, as per Euromonitor International.
One of its best-selling products, bhujia, a crispy fried snack made with flour, herbs, and spices, is a staple in mom-and-pop stores across India, sold at prices as low as ₹10 (12 U.S. cents). The company has also expanded its portfolio to include frozen foods, sweets, and ready-to-eat meals, catering to both domestic and global consumers.
Why Temasek Is Betting on Haldiram’s
Temasek has been steadily increasing its exposure to India’s fast-moving consumer goods (FMCG) and retail space. The acquisition of a stake in Haldiram’s aligns with its strategy of backing high-growth, family-owned businesses that dominate local markets.
The Indian FMCG sector has seen a surge in foreign investments as global firms look to capitalize on the country’s growing consumer base and shifting dietary habits. With rising disposable incomes, urbanization, and demand for packaged food, India’s snacks market is poised for significant expansion in the coming years.
Future Prospects and Market Expansion
With Temasek now on board, analysts speculate that Haldiram’s could accelerate its international expansion or consider a public listing in the future. While the company has a strong domestic presence, it has been expanding into North America, the Middle East, and Southeast Asia, where Indian snacks are gaining popularity.
The investment also strengthens Temasek’s footprint in India’s consumer market, complementing its existing holdings in Zomato, Licious, and Devyani International.
Neither Temasek nor Haldiram’s have officially commented on the deal, and calls to Haldiram’s CEO Krishan Kumar Chutani went unanswered.
Also read: India’s Retail Market to Hit ₹190 Trillion
Final Thoughts
The Temasek-Haldiram’s deal underscores the growing global interest in Indian consumer brands and the rising valuations of family-run businesses in the FMCG sector. As Haldiram’s looks to scale its operations and enter new markets, Temasek’s backing could provide the necessary financial and strategic support to fuel its next phase of growth.
(This article was first reported by Reuters.)
