Kellogg's Goes Beyond Breakfast, Seeks A Significant Stake In Snacks Maker Haldiram’s
- Published | 15 February 2019
Kellogg's is eyeing a 51% stake in the Delhi and Nagpur arms of Haldiram's, valuing around USD 3 billion, which will fuel the bakery market
India: World’s second-largest snack foods company, Kellogg's seeks a big bite of India’s leading snack maker Haldiram’s. The deal may see the New York Stock Exchange-listed Kellogg’s pick up a significant stake in the company, valuing Haldiram’s at around $3 billion (Rs 20,000 crores). Haldiram’s operates out of three hubs of Delhi, Nagpur, and Kolkata after the Agarwal family split the business geographically among themselves in the 1990s. The ongoing talks involve two of the three branches of the company — Delhi-based Haldiram Ethnic Foods and its affiliates, and Nagpur based Haldiram’s Food International and affiliates that cater to the western and southern markets. Deutsche Bank is advising Haldiram's on this proposed transaction,
American breakfast cereal giant Kellogg is believed to be pressing for a 51% stake in the two divisions while the Agarwal family is not keen to cede control and prefers a 25% dilution. The eastern faction of the family that manages Haldiram Bhujiawala from Kolkata is not part of the transaction. It is also the smallest of the three. The Delhi and Nagpur divisions, together, are expected to end FY19 with sales of Rs 4,500-5,000 crore and profit of Rs 450-550 crore.

Related Blog
- Prebiotics consumption expands in food and beverage applications...
- Online education industry – How has COVID-19 impacted the growth dynamics
- Lithium ion batteries continue to gain phenomenal traction in the automotive sector...
- Personal Protective Equipment Industry – 6 Major Application Sectors Driving...