PepsiCo has entered the competition for a minority stake in Haldiram Snacks Food, intensifying the bidding war alongside key contenders Temasek and Alpha Wave Global. Executives from PepsiCo’s headquarters in New York have reportedly initiated direct talks with the Agarwal family, founders of India’s leading ethnic snacks brand.
The Agarwal family is seeking its first external investment and has pegged Haldiram’s valuation between ₹85,000 crore and ₹90,000 crore. This valuation makes the company an attractive target for global investors, including PepsiCo, which aims to expand its presence in India’s burgeoning ethnic snacks market.
While PepsiCo dominates the western snacks category with brands like Lay’s, Kurkure, and Doritos, it lags behind in the ethnic snacks segment, a stronghold of Haldiram. A minority stake in Haldiram would provide PepsiCo with a significant foothold in India’s ₹42,694 crore snacks market, expected to more than double by 2032, according to IMARC Group.
The move comes at a time when PepsiCo faces stiff competition from regional players and direct-to-consumer snack brands. Despite its stronghold in beverages, PepsiCo’s focus in India has shifted to snacks, an area where it sees potential synergies with Haldiram’s extensive distribution network and dominance in ethnic snacks.
Temasek remains the frontrunner in discussions to acquire a 10–15% stake for over $1 billion. Alpha Wave Global is also in advanced stages of negotiations. PepsiCo’s entry is seen as exploratory, with no formal offers yet made. However, industry insiders suggest that the Agarwal family could seek competitive bids if serious interest emerges from multiple suitors.
Haldiram reported ₹12,800 crore in revenue for FY24, dwarfing PepsiCo’s snacks revenue of ₹4,763 crore during the same period. The ethnic snacks market, dominated by brands like Haldiram, Bikanerwala, and Balaji, is highly fragmented but lucrative.
PepsiCo’s past attempts to secure a stake in Haldiram have not materialized, including discussions led by former CEO Indra Nooyi. Analysts suggest that Haldiram may eventually seek a full buyout at a premium rather than settle for a minority investment.
As the Agarwal family considers its options, the race for Haldiram’s stake underscores the growing global interest in India’s snacks market, with its vast potential and high growth trajectory.