Tata Group in talks to buy 51% stake in Haldiram's: Report
New Delhi: Tata Group is likely to compete directly with Pepsi and billionaire Mukesh Ambani's Reliance Retail as the conglomerate’s consumer unit is in talks to buy at least 51% of popular snack food maker Haldiram's, Reuters reports said.
The talks are yet to reach a conclusion as Tata is not comfortable with the $10 billion valuation sought, two people briefed on the matter said, the report said quoting sources.
Haldiram's is a popular name in India with presence throughout the country.
The report is also in discussions with private equity firms including Bain Capital about the sale of a 10% stake, they said.
The source was quoted as saying by Reuters that Tata (Consumer) is seen as a tea company, and Haldiram's is huge in the consumer space with a wide market share
Reuters reported that the sources spoke on condition of anonymity.
Founded in 1937, Haldiram’s crispy "bhujia" is one of the most preferred snacks in India and is available for as little as 10 rupees in stores.
India's savoury snack market is nearly $6.2 billion where Haldiram’s share has 13%, according to Euromonitor International.
Pepsi, whose Lay's chips is one of the top brands, also has around 13%.
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