Private equity giant Blackstone has withdrawn from negotiations to acquire a minority stake in Haldiram’s snacks business due to valuation disagreements, sources familiar with the matter said. The firm had been in talks for over seven months but decided to step away from the deal, with no plans to reconsider.
Blackstone had sought a 15% stake at a valuation of approximately $8 billion, while Haldiram’s was firm on a $10 billion valuation. The divergence in expectations, along with differences over the timeline for a potential initial public offering (IPO), led to the breakdown of discussions.
With Blackstone out, Singapore’s Temasek remains interested in acquiring a stake in the iconic Indian snacks brand, according to a third source. The development leaves Haldiram’s with fewer suitors as it looks to bring in investors for expansion.
Haldiram’s, which holds nearly 13% of India’s $6.2 billion savory snacks market (as per Euromonitor International), has been a sought-after asset for global investors. The brand, known for its wide range of Indian snacks, including its signature bhujia, also operates a restaurant business.
Another key point of contention in negotiations was the proposed timeline for Haldiram’s public listing. Blackstone had pushed for an IPO within three years of investment, whereas Haldiram’s management was in favor of a five-year timeframe.
Haldiram’s CEO Krishan Kumar Chutani declined to comment on the development, while Blackstone and Temasek did not immediately respond to queries.
Founded in 1937 in Bikaner, Rajasthan, Haldiram’s has grown from a small shop to one of India’s largest packaged food brands. Its products, especially bhujia, are widely available across traditional mom-and-pop stores and modern retail chains.
As global investors continue to eye India’s fast-growing snack market, it remains to be seen whether Haldiram’s will adjust its valuation expectations or find another investor willing to meet its terms.