MUMBAI – Big Moves in the Snack Industry!

Temasek Holdings, the state investment firm from Singapore, is reportedly in early discussions to acquire a minority stake in the iconic Indian snack maker, Haldiram Snacks. This ambitious transaction could potentially value Haldiram, the largest player in the Indian snack market, at an astonishing $11 billion (approximately S$14.3 billion).

Sources indicate that Temasek is exploring a 10% to 15% stake acquisition, which would land around a staggering $1 billion or more. Such an investment not only underscores Haldiram's market dominance but also hints at the firm's future trajectory towards an Initial Public Offering (IPO), a move that could redefine its financial landscape and expand its reach.

However, negotiations are still in the preliminary phase, and there's no certainty that a deal will materialize. Notably, Haldiram has attracted interest from various other suitors, which intensifies the competitive atmosphere surrounding this transaction.

Temasek has chosen to remain tight-lipped about the dealings, while Haldiram has yet to provide a comment on the matter. Haldiram itself has a rich history, dating back to the 1930s, when it was established by Ganga Bishan Agarwal in northern India. The company not only offers a diverse range of products, including sweet and savory snacks, but it also operates 43 restaurants in and around the bustling capital, Delhi.

The Agarwal family, which has longstanding ties to the business, is reportedly weighing options for either a sale or an IPO, according to sources from Bloomberg News. This potential shift comes at a time when global investors are increasingly setting their sights on India, drawn by the country's rapid economic growth, which has turned it into a lucrative environment for investments.

In the last two decades, Temasek has invested nearly $37 billion in India. Vishesh Shrivastav, the managing director for India investments at Temasek, indicated that the firm is planning yet more substantial commitments in the coming years. Temasek's investment strategy in India has primarily revolved around acquiring minority stakes rather than majority holdings, focusing on sectors like digitization, consumption, and sustainable living.

Among its other potential investments is VFS Global, a prominent visa outsourcing and technology services firm, which could be valued at about $7 billion, including debt. This growing interest in India's thriving economy highlights the increasing significance of the subcontinent as a major player on the global investment stage.

Stay tuned as we continue to track this developing story—will Temasek seal the deal with Haldiram, or will competition heat up? Only time will tell!