TATA Consumer Products to buy Haldiram’s?
On Wednesday, TCPL (Tata Consumer Products Limited) stated that the company is not in any negotiations with Haldiram’s about acquiring a 51% stake in the company. However, there were several rumors about TATA’s FMCG arm planning to do the same.
Haldiram’s is India’s one of the leading snack makers as well as restaurant operators. TCPL stated that: “The company is not in negotiations as reported” to acquire Haldiram’s.” Later a company spokesperson added, “Tata Consumer Products does not comment on market speculation.”
On the other hand, Haldiram’s management declined to comment on the matter. TCPL says that the filing was done as a response to clarification sought by NSE & BSE about the reports.
The Rumours
The rumors were that the TCP consumer unit was in talks to buy at least 51% of Haldiram’s. But, it was not comfortable with the valuation of $10 billion. This comes from Reuters. Well, even before Tata Group was in talks with Bisleri for Rs. 7,000 core which was later sacked.
Here’s a video explaining everything one needs to know about the story of Haldiram’s
Haldiram’s dates back to 1937 which was a tiny shop known for its crispy bhujia. Since then, it has grown tremendously and diversified into other food snacks. Its rival Bikaji Foods International is competitive as well to some extent. TCPL owns FMCG brands like Tata Coffee, Tata Tea, Tata Salt, Tetley, and many more. It also owns the coffee and other beverages segments including Himalayan and Gluco+. The food & beverages sector is where the company is looking to expand further.
People’s Take
Despite the rumors being fake, some insiders feel that it could diversify the portfolio of TATA. Along with that, the acquisition shall also boost its presence in the competitive snacks market. It is known that Haldiram’s owns a significant market share in India which would help to strengthen the position of TATA.
Now, the only room is for discussion and market speculations as both companies have not commented anything about it. Should TATA plan to acquire Haldiram’s? What do you think? Let us know your thoughts in the comments below.
