Temasek to Acquire 10% Stake in Haldiram for $1 Billion Amid Expansion Plans

Singapore’s sovereign wealth fund, Temasek Holdings, has sought approval from the Competition Commission of India (CCI) to acquire a 10% stake in Haldiram Food and Snacks Private Limited, India’s largest packaged snacks and sweets company. The investment, valued at $1 billion (approximately ₹8,600 crore), will be made through Jongsong Investments Pte, a subsidiary of Temasek. The transaction involves acquiring shares and voting rights, as per Section 5 of the Competition Act, 2002, with a notice filed to the CCI on March 20.

This move follows the merger of Nagpur-based Haldiram Foods Private Limited and Delhi-based Haldiram Snacks Private Limited, forming a single entity with an estimated valuation of ₹84,000 crore ($10 billion). By securing a stake in the newly unified company, Temasek aims to strengthen its foothold in India’s growing food and beverage sector, a market driven by rising demand for packaged snacks and traditional sweets.

The proposed deal involves Temasek acquiring less than 10% of the issued and paid-up equity share capital of Haldiram Snacks Food. In a notice to the Competition Commission of India (CCI), Jongsong Investments and Haldiram Snacks Food stated that the transaction falls under Section 5 of the Competition Act, 2002, covering the acquisition of shares and voting rights. Despite regulatory scrutiny, both parties asserted that the deal does not raise competition law concerns, irrespective of market definitions.

To assist the CCI’s assessment, they suggested defining the relevant market as the broader packaged food sector in India. They also outlined subcategories within this segment, including snacks, sweets, ready-to-eat products, dairy, bakery, chocolates, and non-carbonated beverages. 

After months of negotiations, Haldiram and Temasek finalized the agreement. The Agarwal family, which controls Haldiram Snacks Food, chose to sell a minority stake instead of a larger divestment. Before this, multiple private equity firms, including Bain Capital-led consortiums, Alpha Wave Global, and Blackstone, had shown interest in acquiring a stake in the company.

Industry sources suggest that the Agarwal family may seek another investor to sell additional equity. Haldiram Snacks Food generated over ₹12,500 crore in revenue in FY24, further strengthening its position as India’s leading snack and sweets company.

Looking ahead, the Agarwal family is reportedly considering an Initial Public Offering (IPO) to capitalize on India’s booming stock market. The valuation set by Temasek’s investment could serve as a benchmark for the potential listing, further cementing Haldiram’s market leadership.

Haldiram Snacks Food emerged from the merger of two family-operated businesses—Haldiram Foods International (Nagpur) and Haldiram Snacks (Delhi). While the National Company Law Tribunal (NCLT) has given its approval, other regulatory clearances are still awaited. This unification combines two key entities, further solidifying Haldiram’s position in the market.

Founded in 1937 in Bikaner, Rajasthan, Haldiram started as a small sweets and snacks shop and has since grown into a global brand, with products available in over 80 countries. Over the decades, it expanded with manufacturing units in Kolkata, Jaipur, and New Delhi, eventually becoming India’s first large-scale producer of 100% vegetarian snacks. With a diverse product range and a strong export presence, Haldiram continues to dominate the packaged food sector in India.