Tata Consumer Products has firmly denied recent reports suggesting its interest in acquiring a 51% stake in the renowned Indian snack food giant, Haldiram’s, at an estimated valuation of $10 billion. The clarification came through a regulatory filing, with Tata Consumer Products asserting that it is not engaged in any negotiations, contrary to claims made in a news article published by Reuters.
The decision to abstain from the deal reportedly stemmed from Tata’s reservations about the lofty valuation expectations put forth by Haldiram. While this potential acquisition would have represented a substantial expansion of Tata’s consumer product portfolio, the company ultimately decided not to pursue the transaction.
Tata Consumer Products, recognized for its iconic brands like Tetley and its partnership with Starbucks in India, would have ventured into the snack food segment through this acquisition. Meanwhile, Haldiram’s is a widely recognized Indian snack brand celebrated for its crispy “bhujia” snack and an array of other delectable Indian treats. It maintains a robust presence both within India and on the international stage.
Haldiram’s has claimed a significant share of India’s savoury snack market, valued at $6.2 billion, and has successfully extended its footprint into global markets such as Singapore and the United States. The company also operates approximately 150 restaurants, offering a diverse range of food items that encompass local delicacies, sweets, and Western cuisine.
While Tata Consumer Products has officially dismissed the acquisition reports, had they materialized, it would have marked a notable development in the Indian consumer goods industry, positioning Tata as a prominent player in the snack food sector and pitting it against established brands like Pepsi, renowned for its Lay’s chips.