PepsiCo is reportedly in discussions to acquire a stake in Haldiram Snacks Food, one of India’s leading snack brands, owned by the Aggarwal family. The move has triggered heightened competition in the Indian snacks market, with global investment firms Temasek and Alpha Wave Global also looking to increase their presence in this rapidly growing sector, according to media reports.
The discussions between PepsiCo and the Aggarwal family are still in the early stages, and it remains uncertain whether the deal will materialize, according to executives quoted in the report. Unlike its Indian counterpart, the funding for this potential stake acquisition will reportedly be led by PepsiCo’s parent company in the US.
Temasek and Alpha Wave Global have submitted binding offers for a 10-15% stake in Haldiram, advancing to the later stages of negotiations last month. Temasek is reportedly leading the talks, with a potential investment surpassing $1 billion.
Haldiram, a dominant player in the ethnic snacks market, offers a diverse range of over 500 products, including namkeen, sweets, ready-to-eat meals, and pre-mixed food items. The company reported a revenue of Rs 12,800 crore for FY24, more than double the Rs 4,763.29 crore snacks revenue of PepsiCo India for April-December 2023.
PepsiCo, known for its dominance in the Western snacks segment with brands like Lays, Kurkure, and Doritos, holds a 24% market share in that category. However, its presence in traditional Indian snacks such as namkeen and bhujiya is limited. A stake in Haldiram could provide PepsiCo with a strategic entry into the rapidly growing ethnic snacks market.
The Indian snacks market, valued at Rs 42,694.9 crore in 2023 (according to IMARC Group), is expected to reach Rs 95,521.8 crore by 2032. While the market continues to expand, it remains fragmented, with regional players like Balaji, Bikanerwala, and Bikaji Foods offering stiff competition through lower prices, direct distribution networks, and better retailer margins, presenting challenges for larger players like PepsiCo.