Haldiram’s eyeing mega fund-raising round
By Ashwin Mohan
India's top snack company Haldiram's is embarking upon a mega fund-raising exercise and is looking to tap private equity funds for the same, three sources familiar with the company's plans told ET NOW on the condition of anonymity.
"The company has recently appointed i-bankers for the process and is looking to raise around Rs 2,500 crore," said one of the three sources cited above.
"The deal is at a very preliminary stage and the route could be a combination of fresh and secondary issue of shares depending on the valuations," said another source.
It is not immediately clear if the deal proceeds will be used for business expansion or internal rejig, sources added. ET NOW is awaiting email responses to a query sent to Haldiram officials. This is not the first time the company has planned a fund-raising round. On May 17, 2016, the Times of India had reported that Haldiram's was in talks with PE funds for a potential Rs 1,300 crore financing round. "There is considerable interest in the private equity space for home grown food brands, but valuations have proven to be a hurdle in the past," added a banking source.
Haldiram's, which has now gained iconic status in the domestic market, had modest beginnings with a small shop in Bikaner in 1937 and has survived disputes and break-ups in the original Agarwal family. It is present in the namkeen, savouries, chips, fund foods & frozen foods segments according to its official website.
The company has three areas of operations with Haldirams Snacks and Ethnic Foods which clocked Rs 2,136 crore from the north last year, Nagpur based Haldirams Foods International that caters to western and southern Indian markets with annual sales of Rs 1,613 crore and finally, Haldiram Bhujiawala, for the eastern market with revenues of Rs 298 crore in FY16, according to data from company research platform Tofler. The company is also present overseas in 50 countries including UK, USA, Australia, Japan, Thailand, New Zealand, UAE and Sri Lanka.