The Competition Commission of India (CCI) has approved the demerger of the FMCG business of Haldiram Snacks and Haldiram Foods into Haldiram Snacks Food. The CCI also approved the acquisition of 56% and 44% shareholding in Haldiram Snacks Food by existing shareholders of Haldiram Snacks and Haldiram Foods.
Haldiram Snacks manufactures and distributes packaged food products such as snacks, namkeen, sweets, ready-to-eat, pre-mixed and frozen foods, and is operated by Manohar Agarwal and. Madhu Sudan Agarwal.
Haldiram Foods International, on the other hand, is headquartered in Nagpur, and headed by Kamalkumar Shivkisan Agrawal.
Post the proposed transaction, the new entity Haldiram Snacks will undertake the FMCG Business that is currently managed by the Delhi and Nagpur factions. “This business would comprise the collective FMCG business of the Haldiram Snacks and Haldiram Foods and their respective subsidiaries,” the CCI said in its note.
The proposed combination involves a demerger of the respective FMCG businesses of the two factions through an NCLT approved scheme of arrangement.