00:00 Hi, this is Bhavna and you are watching GoodReturns.
00:02 Haldiram is a name that makes the middle class of India feel like a premium customer.
00:08 From every lane, from the railway station to the bus stand,
00:10 some products of Haldiram are available for just 5 to 10 rupees.
00:14 From Kashmir to Kanyakumari, there is probably no corner of the country where Haldiram is not mentioned.
00:19 But the real heir to this name, who will become it in the end, has once again been trapped in its cage.
00:25 Because before this, neither Tata nor Pepsi could make Haldiram.
00:29 Actually, now once again, the news is coming out that Haldiram can be sold.
00:33 Since 1937, it has been discussed to buy the Haldiram brand once again in the market.
00:39 For the first time, officially, three major foreign companies have put a bid to buy its entire business.
00:45 The world's largest private equity fund, Blackstone, Abu Dhabi Investment Authority,
00:49 and along with Singapore's GIC,
00:51 Haldiram Snacks Food Private Limited wishes to buy a controlling stake of around 74 to 76%.
00:58 Blackstone has set a valuation of 8.5 billion dollars for this deal, i.e. around 70,000 crores.
01:05 Before this, Tata Group also discussed buying Haldiram.
01:08 At that time, Haldiram wanted a valuation of 10 billion dollars for itself.
01:12 However, Blackstone has now put a non-bidding offer.
01:16 This means that Blackstone can buy Haldiram, but it is not bounded for it.
01:21 And neither is Haldiram bound to do this deal.
01:24 But if this deal happens, it will be the largest private equity deal in India so far.
01:29 Now let's understand Haldiram's business.
01:32 So Haldiram's business is now divided into three parts.
01:35 This means that their brand name and logo are the same,
01:38 but the operations are managed by three different functions of the Agarwal family.
01:42 One function is of Kolkata, while the other is of Delhi and Nagpur.
01:47 If Blackstone invests in Haldiram, then the business of Nagpur and Delhi will merge first.
01:53 After this, the new company will be able to buy 74-76% of Blackstone Consortium.
02:00 Haldiram's business in Delhi is with Manohar Agarwal and Madhusudan Agarwal.
02:05 While Nagpur's business is with Kamal Kumar, Shiv Kishan Agarwal.
02:09 The name of the new company will be Haldiram Snacks Food Private Limited.
02:13 In this, Nagpur's Haldiram Foods International Private Limited
02:17 and Delhi's Haldiram Snacks Private Limited business will merge.
02:21 In the new company, only Namkeen and FMCG products will be included.
02:25 And Haldiram's restaurant business of around Rs. 1800 crore will be separate from this.
02:31 The Kolkata business will also not be a part of this deal.
02:34 In the new company, 55% of Delhi's Agarwal family and 45% of Nagpur's family will be involved.
02:41 See, 500 types of products are made under the name of Haldiram Brand.
02:46 In this, from Son Papdi to dry samosas, mathri, Namkeen, bhujia, chocolate, ready to cook, ready to eat,
02:52 biscuits, cookies and non-carbonated drinks are included.
02:56 The attempt to buy this brand name has been going on since 2016-17.
03:00 While the new generation of the family is not very interested in moving this business forward.
03:05 They themselves want to get out of day-to-day operations.
03:09 That's why Haldiram Group gave KK Chutani a job as CEO of the company for the first time last year.
03:15 They have run a family business like Dabur International before.
03:20 In 2016-17, private equity companies like General Atlantic, Bain Capital, Capital International, PA Associates,
03:26 Warburg Pincus and Everstone talked to the Agarwal family about buying Alpange, a controlling steak, in Haldiram.
03:34 After that, in 2018-19, Kellogg's also talked to the Agarwal family for about a year, but could not reach an agreement.
03:42 After that, PepsiCo's Indira Nooyi also talked to Haldiram about buyout, which is a direct competitor of Lays in the market.
03:50 Last year, Tata Consumer Products Ltd. was also talking to Haldiram to buy 51% stakeholding.
03:56 But this also could not be done because the matter was stuck with valuation.
04:00 Let's know a little more about why Haldiram's gujiya is special and how did Haldiram start?
04:06 Haldiram's start was in 1977 when Ganga Bishun Agarwal opened a sweet and salty shop in Bikaner.
04:12 He came to Delhi from Bikaner and used this as his business.
04:18 Haldiram was known for his gujiya because it was more crispy than other salty snacks in the market.
04:26 The reason for this was that Ganga Bishun Agarwal used gram flour along with moth dal flour in his recipe.
04:34 This gave a unique taste to Haldiram's gujiya.
04:36 Now Haldiram has more than 150 restaurants and the company's business is spread in 100 countries.
04:42 In which, its franchise is also in the UK, US and Japan.
04:44 So this was Haldiram's entire business.
04:46 And now he can buy it by joining a consortium of Blackstone.
04:52 This is at the initial stage, what will happen next, a lot of information has not been officially revealed.
04:58 But now the discussion is that Haldiram, who was a desi, is now going to be a foreigner.
05:03 What do you think? Do tell us in the comments.
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