Tata Aims for Majority Stake in Haldiram's as Snack Maker Sets $10 Billion Valuation: Report

 Tata Group's consumer division is currently in negotiations to acquire a minimum of 51% ownership in the popular Indian snack food manufacturer

Haldiram's

 Haldiram's. However, it appears that Tata is hesitant about the $10 billion valuation that Haldiram's seeks for this deal, according to sources familiar with the matter.Should the transaction be successfully completed, it would place the Indian conglomerate in direct competition with Pepsi and Mukesh Ambani's Reliance Retail. Haldiram's, a well-known brand in India, is also exploring discussions with private equity firms like Bain Capital for the potential sale of a 10% stake in the company.

Tata Consumer Products, the entity involved in these negotiations

It is the owner of the UK tea company Tetley and maintains a partnership with Starbucks in India.While Tata expressed interest in acquiring more than 51%, they have communicated to Haldiram's that their asking price is considerably high, as per a third source with direct knowledge of the talks. This potential acquisition represents an enticing opportunity for Tata, expanding beyond its tea-centric image into the broader consumer market where Haldiram's possesses significant market share.

It's worth noting that the sources providing this information have chosen to remain anonymous. A spokesperson for Tata Consumer Products declined to comment, and Haldiram's Chief Executive Krishan Kumar Chutani and Bain Capital also refrained from making statements.

Haldiram's, a family-run business 

with origins dating back to a small shop established in 1937, is renowned for its crispy "bhujia" snack, which is available for as little as 10 rupees in local stores. The company holds a substantial 13% share of India's $6.2 billion savory snack market, as reported by Euromonitor International. Pepsi, known for its Lay's chips, holds a similar share in this market.

Additionally, Haldiram's products are distributed in international markets such as Singapore and the United States. The company operates approximately 150 restaurants offering a variety of local and Western cuisines and sweets.