Blackstone’s Bold Move

Blackstone Inc., a leading private equity firm, is reportedly in the final stages of negotiations to acquire a significant stake in Haldiram’s, a renowned Indian snack company. The deal, which involves the founding Agrawal family, could potentially value Haldiram’s at a staggering INR 70,000 crore, according to various media outlets.

For several months, Blackstone has been engaging with the Agrawal family members based in Delhi and Nagpur. The discussions also involve consortium partners Abu Dhabi Investment Authority and Singapore’s GIC, who are known to back Blackstone’s global funds. Despite initial stagnation due to valuation disagreements, the negotiations have recently regained momentum.

Insider sources reveal that the Blackstone consortium initially aimed to acquire up to 76% of Haldiram’s. However, the Agrawal family has been reluctant to relinquish such a controlling stake. “The family members have had numerous discussions about the company’s valuation. They are not keen on giving away a 76% controlling stake as the private equity investors desired. They wish to retain a larger share of the business. While some family members were considering selling only a 51% stake, the ongoing discussions with Blackstone are likely to result in a stake sale closer to 74%,” said a source close to the matter.

If the deal comes to fruition, it will mark the largest private equity takeover in India’s history. However, the discussions with Blackstone are not yet finalized and could still fall through. The promoters of Haldiram’s are also contemplating other options, such as taking the company public.

In the meantime, the Agrawal family’s Delhi and Nagpur branches are consolidating their FMCG businesses, Haldiram Snacks Private Limited and Haldiram Foods International Private Limited, into a new entity named Haldiram Snack Foods Private Limited. The Delhi branch will hold a 56% stake in this new company, while the Nagpur branch will own the remaining 44%. The merger has received approval from the Competition Commission of India and is expected to be completed in the coming months.

As Ratan Tata, an eminent Indian industrialist, once said, “In the face of adversity, we often discover courage and strengths we never knew we had.”