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September 7 – Tata Consumer Products Limited (TCPL) has dismissed talks and acquisition of a 51 percent stake in Haldiram. According to media reports, it is being told that the FMCG (fast-moving consumer goods) unit of the Tata Group is in talks to acquire Haldiram’s 51 percent stake. But along with this, the news is that due to the high appraised value nothing has been finalized yet.
There is news in the media that Tata Group may buy Haldiram’s stake. Tata Group’s FMCG company is in talks with Tata Products. According to media agency Reuters, Tata is in talks to buy Haldiram’s 51 percent stake. For this stake, a valuation of $10 billion i.e. about ₹83 thousand crore has been sought from Haldiram. However, there has been no consensus between the two companies regarding the valuation.
According to Tata Consumer, the appraised value fixed by Haldiram for this deal is very high. Due to this agreement is not being reached between the two companies. Talks are going on between both companies to agree on the valuation price. If this deal is done and Tata Group acquires Haldiram, then Tata Group’s hold in this sector will be strengthened.
Tata Group’s company Tata Consumer Products owns the British company Tetley. In India, Tata Group is doing business in partnership with Starbucks. Wherein Haldiram is one of the big companies in this sector. Its market share is quite big. According to a report by Euromonitor International, Haldiram has about 13 percent market share in India’s namkeen and snacks market, while Pepsi’s popular brand Lay’s also has about 13 percent share in the Indian market. If the Tatas control Haldiram, then there will be a big opportunity for the Tata group. Apart from India, Haldiram’s snacks are also sold in foreign markets like Singapore and America. Apart from this, Haldiram also has about 150 restaurants across the country which are very popular among domestic customers for their local food and sweets. In such a situation, if Tata acquires Haldiram, then the reach of consumer products will expand significantly.
Tata is not alone in buying Haldiram’s stake and other companies are also in the queue to buy its stake. While Tata is bidding to buy a 51 percent stake, Haldiram is in talks with private equity firm Bain Capital to sell its 10 percent stake.
In this matter, the spokesperson of Tata Consumer Products Limited refused to comment saying that the company does not respond to market estimates. Similarly, the CEO of Haldiram and Bain Capital’s private equity firm have also refused to say anything.
After this news, the shares of Tata Consumer Products Limited have increased. The shares of the company have increased from 3 percent to 4 percent during the trading and reached beyond ₹ 870.