Kellogg’s poised to take big bite of India's snack market
Reports say Kellogg’s is eyeing a 51% stake in the two businesses, but the owners are only looking to sell a 25% stake.
Snacks and sweets maker Haldirams started as a small shop in Bikaner, Rajasthan, in 1937 by Shivkisan Agarwal and gradually spread its presence across India.
Today, the company is owned by the Agarwal brothers who split the family business among themselves in the 1990s.
The three arms include Haldirams Snacks and Ethnic Foods in Delhi, the largest business with revenue of Rs 2,619 crore ($36m) for the year ending March 31 2018; Nagpur-based Haldirams Foods International, which caters to West and South India; and Haldirams Bhujiawala in Kolkata.
The company also operates retail chain stores and a range of restaurants in Nagpur, Kolkata, Patna, Lucknow, Noida and Delhi.
Boost Indian presence
Kellogg’s is reported to be in exclusive negotiations with only two branches of the group, together valued at around Rs 20,000 crore ($3bn).
In the past, several private equity firms like KKR, Everstone and General Atlantic tried to sign a deal with Haldiram’s, but these never materialized.
If successful, the deal will boost Kellogg’s presence in India – which it entered nearly 25 years ago, sustaining a double-digit growth over the past few years. The Indian snack market is also expected to grow with a double digit CAGR, forecast to be valued at more than Rs 100,000 crore ($140m) by 2024.
Both Haldirams and Kellogg’s have declined to comment on the ongoing discussions.
