Tata Group is currently in negotiations with Indian snack food manufacturer Haldiram’s to acquire a controlling of 51% stake in the brand
Bengaluru: The consumer division of Tata Group is currently in negotiations with Indian snack food manufacturer Haldiram’s to acquire a controlling of 51% stake in the brand, as per media reports. However, the conglomerate is apprehensive about the proposed valuation of $10 billion as Haldiram’s annual revenue currently stands at approximately $1.5 billion.
Should the deal come to fruition, this would position the Indian conglomerate in direct competition with both Pepsi and Reliance Retail, the retail arm of billionaire Mukesh Ambani’s Reliance Group. Haldiram, a household name in India, is engaged in discussions with private equity firms, including Bain Capital, regarding the potential sale of a 10% stake in the company.
Tata Consumer Products, the entity that holds Tetley, a prominent UK tea company, and maintains a partnership with Starbucks in India, is reluctant to accept the $10 billion valuation.