PepsiCo: Haldiram Snacks that is India’s leading ethnic snacks manufacturer is going to sell its majority stake. The race to acquire Haldiram is heating up very fast. According to several reports, PepsiCo has entered the race to acquire a minority stake in Haldiram Snacks. The American snack manufacturer is competing with prominent contenders like Temasek and Alpha Wave Global.

PepsiCo- Major Competitors

Temasek and Alpha Wave Global both are in advanced negotiations with the Agarwal family. The two firms are in constant conversation with the founders of Haldiram. These firms are seeking to purchase a 10-15% stake in India’s premier ethnic snacks and convenience foods manufacturer.

Temasek is currently leading discussions for a minority stake, with a reported valuation of over $1 billion. Rival bids from entities like Blackstone and Alpha Wave Global have added to the competition. However, past negotiations indicate that Haldiram founders may hold out for higher valuations.

Despite PepsiCo’s interest, analysts believe Haldiram may demand a premium or pursue a majority sale instead of a minority stake. Past discussions with companies like Mondelez, Kellogg’s, and Tata Consumer have not materialized into agreements.

PepsiCo- Acquisition Discussions

Executives from PepsiCo’s New York headquarters have initiated discussions with the Agarwal family in recent weeks. These talks are in a preliminary stage, with funding for the potential transaction expected to come primarily from PepsiCo’s US parent, while its Indian division plays a less prominent role, the report noted.

The US parent company will spearhead any potential investment, with the Indian division playing a relatively minor role in the process. The Aggarwal family is seeking their first external investor, with expectations of a company valuation between Rs 85,000-90,000 crore.

Acquisition Motive

PepsiCo, known for its Lay’s, Kurkure, and Doritos brands, has faced increasing competition in India’s snacks market. Regional players such as Bikanerwala, Balaji, and listed companies like Bikaji Foods, Gopal Snacks, and Prataap Snacks have eroded its market share with competitive pricing and direct distribution.

While PepsiCo leads the western snacks segment with a 24 per cent market share, it lags in ethnic snacks such as namkeen and bhujiya. A partnership with Haldiram could provide PepsiCo with extensive distribution networks and a stronger foothold in this high-growth segment.

PepsiCo has previously acquired brands like Uncle Chips in 2000 and introduced Doritos nachos in 2016-17. These moves highlight its strategy to expand within the snacks segment.

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