The report further stated that Tata wants to buy more than 51% but has told Haldiram's that its "ask is very high". Tata is unwilling at the $10 billion valuation asked, given that Haldiram's annual revenue is around $1.5 billion.
On other hand, Tata's consumer unit, which also sells salt, pulses, spices and mineral water, had revenue of $1.7 billion in the past financial year.
If this deal materialise, it would see the Tata Group directly compete with Pepsi and Reliance Retail.
Haldiram's is an 86 years old name and a multinational sweets, snacks and restaurant company. Haldiram's products are available in more than 80 countries and it has around 150 restaurants selling local food, sweets and western cuisine.
Haldiram's is also in talks with private equity firms including Bain Capital about the sale of a 10% stake, reported Reuters quoting its sources.
Haldiram's has almost 13% share of India's $6.2 billion savoury snack market, according to Euromonitor International. Pepsi, with its Lay's chips, too has around 13% share.
In an interview with CNBC-TV18 last year, Haldiram's Chairman Manohar Lal Agrawal told that Haldiram's wanted to attract private equity investors and debut on the stock market in 2-3 years.
Advertisements