New Delhi: In a big transaction, Singapore investment company Temasek has acquired a 9-10% stake in Haldiram’s, India’s leading snack brand. The deal is worth approximately $10 billion (around ₹8,500 crore). Temasek acquired the stake after months of negotiations on March 11, 2024, beating other prospective investors.
Why global investors are eyeing India’s FMCG sector?
India’s consumer packaged goods industry is in much demand internationally, and Temasek’s foray into Haldiram’s is a sign of this. Foreign investors have noticed that India’s growing economy, as well as increased consumership of packaged snacks and foodstuffs, have tremendous opportunity awaiting them here.
Temasek’s step isn’t a random one-time thing. Temasek has been spreading its tentacles into the Indian market over years now. Through March 2024, it had already put $37 billion into the nation, with another $10 billion planned to be invested over the next three years. Some of its previous investments include a 51% share in Manipal Health (valued at $2 billion) and a dominant position in a $210 million funding for Rebel Foods, a cloud kitchen company valued at $1.4 billion.
Betting big on packaged foods
With this acquisition, Temasek is venturing out of healthcare and food technology into India’s fast-expanding packaged foods industry. As more consumers switch to ready-to-eat foods and traditional Indian cuisine in easy-to-consume packaging, the sector is poised for huge expansion.
Though Temasek has received a minority holding, discussions are continuing with other private equity players such as Blackstone and Alpha Wave Global, who may invest in Haldiram’s too. If more foreign investors join the platform, it will result in more capital and competition, which will urge Indian snack food companies to grow and innovate.
Haldiram’s has been a household name in Indian families for decades, well renowned for its namkeens, sweets, and ready-to-eat food. That it has arrived at a $10 billion valuation is an indication of just how powerful and valuable Indian brands are on the international scene.
What this means for India’s FMCG Industry?
Temasek’s investment is not only good news for Haldiram’s but also for the Indian FMCG industry as a whole. Like, this indicates that international investors recognize enormous potential in Indian brands, which can bring more deals, new launches, and increased innovation in the market. With competition increasing, consumers will get better options and quality in packaged foods.
