Haldiram’s Explores Acquisition of Controlling Stake in Prataap Snacks Valued at $350 Million
Haldiram’s, a prominent Indian snack manufacturer, is currently in early-stage discussions to acquire a majority stake in the listed competitor Prataap Snacks, valued at $350 million. While the talks are ongoing, sources indicate that Haldiram’s aims to secure at least a 51% majority stake, with the final percentage yet to be determined.
Prataap Snacks, known for its Yellow Diamond brand of chips, competes with global brands like Pepsi’s Lays and other local snack producers. The discussions have sparked significant market interest, leading to a surge of approximately 13% in Prataap Snacks shares in Mumbai, reaching their highest levels since 2018 and closing 9.7% higher. While specific financial details and valuation discussions are pending, sources suggest that the potential acquisition could be at a premium to Prataap’s current stock price. This move aligns with Haldiram’s strategic goal to enter the lucrative potato chip segment and reinforce its position in the snack market.
Venture capital firm Peak XV Partners, holding approximately 47% of Prataap Snacks, is reportedly seeking a complete exit from its stake in the company. Prataap made its stock market debut in 2017 and reported annual revenues of around $200 million last year.
The potential acquisition of Prataap Snacks is seen as an opportunity for Haldiram’s to tap into the growing potato chip segment, offering a broader range of flavored snacks to cater to evolving consumer preferences. Operating 14 manufacturing plants across nine Indian states, Prataap Snacks has experienced growth in branded products despite competition from smaller, unorganized companies, as consumer preferences shift towards healthier options.