Business

PepsiCo Eyes Stake in India's Snack Giant Haldiram: A Strategic Move in the Ethnic Food Market

PepsiCo's Strategic Interest in Haldiram Snacks

In a significant development in the global food and beverage industry, PepsiCo has expressed interest in acquiring a stake in Haldiram Snacks, India's leading ethnic snacks and convenience foods manufacturer. This move comes as part of PepsiCo's strategy to strengthen its position in the highly competitive Indian snacks sector.

PepsiCo's Interest in Haldiram Snacks

Preliminary Discussions Underway

Senior executives from PepsiCo's New York headquarters have initiated preliminary discussions with the Aggarwal family, the owners of Haldiram Snacks. These discussions are in the early stages and focus on the potential acquisition of a minority stake, with the company valuation estimated between Rs 85,000-90,000 crore.

Competitive Landscape in India's Snacks Market

PepsiCo, known for its brands like Lay's, Kurkure, and Doritos, faces stiff competition from regional and direct-to-consumer snack manufacturers in India. The ethnic snacks segment, dominated by players like Haldiram, Bikanerwala, and Balaji, remains highly fragmented, offering PepsiCo a unique opportunity for growth through strategic partnerships.

Haldiram's Market Position

Haldiram Snack Foods, with a revenue of Rs 12,800 crore in FY24, significantly outperforms PepsiCo's snacks division in India. Offering over 500 varieties of snacks, namkeen, sweets, and ready-to-eat items, Haldiram represents a lucrative investment for PepsiCo, aiming to expand its footprint in the traditional Indian snacks market.