NEW DELHI: Tata Group’s consumer unit, Tata Consumer Products, has denied reports saying
It is in talks to buy at least 51% stake in popular snack brand Haldiram’s.
“The company is not in negotiations as reported in the article,” said Tata Consumer in a regulatory filing.
The Tata Group company added, “We would like to add that the Company evaluates various strategic opportunities for growth and expansion of the business of the Company, on an ongoing basis. The Company will make appropriate announcements in compliance with the obligations under SEBI (LODR) Regulations, 2015, as and when any such requirement arises.” As per Reuters, Haldiram is also in talks with private equity firms including Bain Capital about the sale of a 10% stake.
The report, citing sources, noted that Tata Consumer Products, which owns UK tea company Tetley and has a partnership with coffee-giant Starbucks in India, has baulked at the $10 billion valuation given that Haldiram’s annual revenue is around $1.5 billion. Additionally, Haldiram is reported to have said that the 51% stake sought is very high.
If the deal goes through, it will give Tata Consumer a big boost in the snack segment where Pepsi has a big presence and Reliance Retail is aggressively expanding its presence. Hardiram has nearly 13% share of India’s $6.2-billion savoury snack market, as per Euromonitor International. The company’s snacks are also sold in overseas markets like Singapore and the United States.
High valuation could be a sticking point
The report, citing sources, noted Tata Consumer Products, which owns UK tea company Tetley and has a partnership with coffee-giant Starbucks in India, has baulked at a $10 billion valuation given Haldiram’s annual revenue is around $1.5 billion. Additionally, Haldiram is reported to have said that the 51% stake sought is very high. If the deal goes through, it will give Tata Consumer a big boost in the snack segment