L Catterton, a global consumer-focused investment firm, on Thursday said it had entered into a strategic partnership with and invested in popular packaged food company Haldiram’s. Sanjiv Mehta, the former CEO and Managing Director of Hindustan Unilever, is the Executive Chairman of the investment firm’s India operations. The latest transaction makes L Catterton the fourth external investor to pick up stake in Haldiram’s following Temasek , Alpha Wave Global and UAE’s IHC earlier this year.
While the deal size and the valuation of the latest transaction were not disclosed, sources in the know said that L Catterton, which manages around $39 billion of equity capital across private equity, credit and real estate, has picked up a minority stake in the company. In March this year, Temasek had picked up a 10% stake in Haldiram’s for $1 billion, valuing the company at $10 billion (Rs 86,000 crore).
A few weeks later, Alpha Wave Global and UAE’s IHC had jointly picked up around 6% stake in the company for the same valuation, sources said. Together, the last three transactions had unlocked about Rs 13,000-14,000 crore in investment for Haldiram’s.
“With the partnership now, Haldiram’s will be able to tap into L Catterton’s global consumer sector expertise, operating prowess and industry network, as well as local talent, insights and relationships,” the investment firm said on Thursday.
It added that the partnership positions Haldiram’s to benefit from L Catterton’s capabilities, including the experience of Mehta. The investment will support Haldiram’s in brand building, new product development, supply chain and distribution optimisation, geographic expansion and talent development. It will also help the snacks maker accelerate international expansion, it added.
Strategic Scaling and Global Ambitions
The investments this year in Haldiram’s comes after the New Delhi and Nagpur factions of the Agarwal family, promoters of the Haldiram Group, merged their businesses after receiving approval from the Competition Commission of India (CCI) last year. According to regulatory filings, Haldiram’s reported a revenue of Rs 12,800 crore and a net profit of Rs 1,400 crore in FY24. FY25 numbers are not available yet.
It is one of India’s leading snack brands, holding an estimated 13-14% share of the Rs 45,000 crore savoury snacks market, according to industry experts. It is widely said to be eyeing an initial public offering in the next few years, prompting global investors to make a beeline for it as growth prospects for ethnic snacks makers booms.
Market Dominance
Rival Balaji Wafers is also eying a private equity investment; with General Atlantic set to pick up a 7% stake in the company for Rs 2,500 crore, valuing the firm at Rs 35,000 crore ($4 billion).
On the latest investment in Haldiram’s, Mehta said, “Haldiram’s is an iconic Indian brand that resonates across the country as the undisputed leader in the ethnic snacks category and has significant potential to become a global brand in the packaged snacks space.”
L Catterton’s current and past investments in the consumer sector include Cholula Hot Sauce, Farmley, Ferrara Candy Company, Goodles, Kettle Foods, Kodiak, Little Moons, NotCo, Planted and Plum Organics.