Tata Consumer and Haldiram : Tata Consumer Products is a consumer goods company while Haldiram is a leading Namkeen Bhujia manufacturing company.
Deal between Tata Consumer and Haldiram : Tata Consumer Products, the consumer goods business of the Tata Group, may buy a stake in Namkeen Bhujia and candy retailer company Haldiram. According to Reuters, Tata Consumer is also in talks to buy a stake in Haldiram. Tata Consumer may reportedly buy a 51 per cent stake in Haldiram.
According to this news from Reuters, Haldiram has asked for a valuation of $10 billion to sell this stake. However, Tata Consumer believes that Haldiram’s requested valuation is too high. If Tata Consumer Products manages to close this deal, it will help compete with companies like Pepsi, Bikaner and Reliance Retail. A Tata Consumer Products spokesperson declined to comment on rumors of the deal. Haldiram CEO Krishna Kumar Chutani also refused to say anything about the deal.
Haldiram’s has access to every household for savory and sweet bhujia. Haldiram’s has more than 150 restaurants across the country where sweets and many types of food are available. Haldiram’s occupies 13 per cent of the country’s savory market. According to one estimate, the market size of Namkeen Bhujia in the country is close to $6 billion. Haldiram is also present in countries such as Singapore and the United States.
Private equity firm Bain Capital is also preparing to buy 10 percent of Haldiram. After this news came to light, there has been tremendous growth in Tata Consumer Products stock. Tata Consumer is trading at Rs 866 with a gain of 2.37 per cent. Namkeen manufacturing company, like Bikaji Foods, is already listed on the stock exchange. Earlier, the Tata Group also wanted to buy mineral water company Bisleri, but the deal could not be finalized.
Source – HT