The Tata Group’s consumer unit, Tata Consumer Products Ltd has denied the report carried out by news agency Reuters that it is in talks to buy at least 51% of popular Indian snack food maker Haldiram’s but is not comfortable with the $10 billion valuation sought.
In a regulatory filing Tata Consumer Products stated in reference to the news article captioned ” India’s Tata seeks control of Haldiram’s, snack maker wants $10 billion valuation” which appeared in www.reuters.com on September 6, 2023.
In this regard, we wish to clarify the following as sought in the letter/email from NSE and BSE:
(a) Whether such negotiations/events were taking place? If so, you are advised to provide the said information along with the sequence of events in chronological order from the start of negotiations/events till date.
Ans: The Company is not in negotiations as reported in the above-referred news article.
Whether you/company are aware of any information that has not been announced to the Exchanges which could explain the movement in the trading, if any? Further, you are advised to provide the said information and the reasons for not disclosing the same to the Exchange earlier as required under regulation 30 of the SEBI (LODR) Regulations, 2015.
Ans: We are not aware of any information that has not been announced to the Exchanges, which requires disclosures under Regulation 30 of the SEBI (LODR) Regulations, 2015.
Earlier, according to report carried out by Reuters A third person with direct knowledge of the discussions said Tata wants to buy more than 51% but has told Haldiram’s that its “ask is very high.”
The potential acquisition represents an exciting opportunity for Tata, the person said, adding: “Tata (Consumer) is seen as a tea company. Haldiram’s is huge in the consumer space and has a wide market share.”
The sources spoke on condition of anonymity.
A spokesperson for Tata Consumer Products said it “does not comment on market speculation”. Haldiram’s Chief Executive Krishan Kumar Chutani and Bain declined to comment.
Family-run Haldiram’s traces its origins back to a tiny shop founded in 1937 and is well-known for its crispy “bhujia” snack sold for as little as 10 rupees across mom-and-pop stores.
It has almost 13% share of India’s $6.2 billion savoury snack market, according to Euromonitor International. Pepsi, famous for its Lay’s chips, also has around 13%.
Haldiram’s snacks are also sold in overseas markets like Singapore and the United States. The company has around 150 restaurants selling local food, sweets and western cuisine.