Blackstone Inc has raised its bid for Haldiram’s, potentially paving the way for the private equity firm to enter India’s lucrative snacks market. According to Moneycontrol, sources familiar with the negotiations indicate that as part of an investor consortium, Blackstone is poised to offer approximately Rs 40,000 crore for a 51 percent stake in Haldiram’s.
This offer would value Haldiram’s between Rs 70,000 and 78,000 crore. The final proposal to Haldiram’s promoters will be contingent on the outcomes of the due diligence process. If successful, this acquisition could grant Blackstone control over Haldiram’s product business, along with a perpetual license to use the brand.
Several contentious issues, including ownership of restaurants and brand licensing, have reportedly been resolved, according to sources. The Haldiram family will retain the brand rights and control over restaurant operations.
“A banker involved in the negotiations stated, ‘The deal and valuations were being stretched due to these issues, but now that they are resolved, the deal should close soon.”
Under the terms of the sale, the Haldiram family will receive an annual royalty from the new owners for the continued use of the Haldiram’s brand.
EY is conducting due diligence on Haldiram’s for Blackstone. The investor consortium also includes Singapore’s GIC and the Abu Dhabi Investment Authority, with Blackstone holding the majority stake.
In response to inquiries about the deal, a Blackstone spokesperson stated, “The firm has not re-bid for Haldiram’s. We submitted an initial proposal in May 2024, but discussions stalled due to valuation differences.”
Haldiram’s CEO, Krishan Kumar Chutani, declined to comment.