There is news of 'Haldiram' brand, which has become synonymous with namkeen in Indian homes, will soon become a part of Tata Group. After all, what is the whole matter, are there preparations to compete with Reliance, read this news..
Be it the 'namkeen' served on the table during wedding talks or the 'snack' eaten at friends' night parties, in both these places the name of one brand remains on the tongue of most people, that is 'Haldiram'. After years of trust, today it has become one of the biggest brands of snacks in India. There is news that Tata Group can now buy such a trusted brand, but is this the whole truth? Let's know…
In a Reuters news, it has been claimed that Tata Group is working on a plan to buy 51 percent stake in snacks brand Haldiram. If this deal is completed, then Tata Group will directly compete with big companies like Reliance Retail and Pepsi in the retail market. However, Tata is not happy with the valuation of Haldiram. However, this has been denied by the Tata Group.
$10 billion valuation
Quoting sources, Reuters has reported that the Tata group is not happy with the $10 billion valuation of the Haldiram brand. On the other hand, Haldiram is in talks with another investor to sell 10 per cent stake. This is a private equity firm Bain Capital.
Tata Consumer Products Company of Tata Group is in talks to acquire Haldiram. This Tata Group company owns Britain's popular tea brand Tetley. At the same time, the same company also looks after the business of Stabux in India. Tata Group says that the annual turnover of Haldiram is 1.5 billion dollars. In such a situation, the valuation of $ 10 billion is a bit strange.
Tata Consumer shares climbed
After this news broke, the share price of Tata Consumer has seen an increase of up to 3 percent. The Tata group is keen to buy the entire 51 per cent stake in Haldiram. So that the company has decisive powers.
Tata Consumer spokesperson initially refused to give any comment in this regard. Later, when the stock exchanges sought information, the company completely denied any such talks. Haldiram's CEO Krishna Kumar Chutani and private equity firm Bain Capital have also refused to say anything.
Market dominance since 1937
Haldiram's was started in 1937. The company's crispy bhujia had won the hearts of people. Haldiram brand is a family run business. From the selling packet of Rs. 5 at Paan shop across the country, it is available in big stores.
Its share in India's $ 6.3 billion namkeen market is about 13 percent. Pepsi's 'Lay's' brand chips have the same share. Tata Group does not currently sell any such product directly.
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