Indian snack maker Haldiram’s is currently in talks to acquire a majority stake in listed rival Prataap Snacks, which holds a valuation of $350 million. The discussions, still in the early stages, are focused on Haldiram’s securing a majority stake of at least 51%, although the final percentage remains undetermined at this point, according to sources with direct knowledge of the matter.
Prataap Snacks, renowned for its Yellow Diamond brand of chips, competes in the market with global brands like Pepsi’s Lays and other local snack manufacturers. The talks have generated significant market interest, causing Prataap Snacks shares in Mumbai to surge approximately 13%, reaching their highest levels since 2018, before closing 9.7% higher.
While specific financial details and valuation discussions are yet to take place, sources suggest that the potential acquisition could be at a premium to Prataap’s current stock price. The move aligns with Haldiram’s ambition to tap into the lucrative potato chip segment and strengthen its position in the snack market.
Venture capital firm Peak XV Partners, holding around 47% of Prataap Snacks, is reportedly seeking a complete exit from its stake in the company. Prataap made its stock market debut in 2017 and reported annual revenues of approximately $200 million last year.
The potential acquisition of Prataap Snacks is viewed as an opportunity for Haldiram’s to tap into the growing potato chip segment, offering a wider range of flavoured snacks to meet consumer preferences. Prataap Snacks operates 14 manufacturing plants across nine Indian states and, despite facing competition from smaller, unorganized companies, has witnessed growth in branded products as consumer preferences shift towards healthier options.