Alpha Wave and IHC join Temasek to invest in Haldiram’s

Global investment firms Alpha Wave Global and International Holding Co. (IHC) have joined Temasek in snack brand Haldiram’s in its ongoing equity funding round, strengthening the firm’s expansion plans, particularly in the US and Middle East.

“The partnership represents patient capital and long-term support to Haldirams growth plans. With this partnership, we are well-positioned to enhance our product offerings, expand our operations, and further our mission to make Haldirams a household name in the Middle East and other international geographies,” a spokesperson for Haldiram’s said on Monday.

The deal's financial advisor, PwC, said that on Sunday, Haldiram’s entered into an agreement with Singapore-headquartered global investment firm Temasek.

The PwC Investment Banking team was the exclusive financial advisor to the transaction, and J Sagar Associates was advisor to Alpha Wave Global.

Khaitan & Co. acted as the legal advisor. Subject to customary regulatory approvals, the deal is expected to close soon.

Merger of Nagpur, Delhi factions

The announcement caps an over year-long period of negotiations for one of India's largest PE deals in the segment by valuation. The precursor to the deal saw the merger of the Nagpur and Delhi factions of the business. The groups demerged the fast-moving consumer goods (FMCG) business of HSPL and Haldiram Foods International Pvt. Ltd (HFIPL)—part of the Haldiram Nagpur group) into a newly incorporated entity, Haldiram Snacks Foods Pvt. Ltd (HSFPL).

Also Read | Haldiram's promoters now offer a smaller bite to investors

Manohar Agarwal and Madhu Sudan Agarwal primarily ran the Delhi business. The Nagpur part of the family was led by Kamalkumar Shivkisan Agrawal, grandson of Haldiram founder Ganga Bhishen Agarwal, who started the company in 1937.

Temasek is a global investment company headquartered in Singapore, with a net portfolio value of $288 billion as of 31 March 2024.

The deal is not only the largest private equity consumer deal in India but also a reflection of domestic businesses that continue to elevate India’s positioning on the global stage, according to Sanjeev Kishan, chairperson of PwC in India.

Also Read | The week in charts: Inflation, Haldiram’s sale, India Inc promotions outlook

In March, Mint reported that the Singapore government’s private equity arm Temasek agreed to acquire a 10% stake for ₹8,500 crore in Haldiram Snacks Food Pvt. Ltd.

Starting out as a small family-owned sweet shop, Haldiram’s today comprises more than 400 varieties of namkeen, confectionery and ready-to-eat food sold across 100 countries. The company offers snacks, namkeen, sweets, ready-to-eat/pre-mix food, frozen food, biscuits, non-carbonated ready-to-drink beverages and pasta. The group also exports to various countries, including the US and those in Europe.