The Competition Commission of India (CCI) on Monday approved the proposed combination involving the demerger of the FMCG business of Haldiram Snacks and Haldiram Foods into a new entity Haldiram Snacks Food.
According to the CCI order dated April 3, the existing shareholders of Haldiram Snacks and Haldiram Foods have acquired a 56 per cent and a 44 per cent stake, respectively, in the new company Haldiram Snacks Food.
Haldiram Snacks, based in Delhi, is a manufacturer and distributor of packaged food products in India, including snacks, namkeen, sweets, ready-to-eat/pre-mix food, frozen food, biscuits, non-carbonated ready-to-drink beverages, and pasta, among others. Its operations are primarily run by Manohar Agarwal and Madhu Sudan Agarwal.
Similarly, Haldiram Foods, based in Nagpur, is also engaged in the manufacture and distribution of packaged food products such as snacks, namkeen, sweets, ready-to-eat/pre-mix food, biscuits, cookies, non-carbonated ready-to-drink beverages, and pasta, among others. Its operations are primarily run by Kamalkumar Shivkisan Agrawal.
Following the proposed transaction, the newly incorporated Haldiram Snacks Food will undertake the FMCG business that is currently undertaken by HFIPL and HSPL, respectively.
The demerger and acquisition are expected to have a significant impact on the FMCG market in India, as Haldiram Snacks and Haldiram Foods are two of the leading players in the industry.
The approval from the CCI is a crucial step in the process, and the companies involved are expected to move forward with the transaction in the coming months.
Haldiram was founded by Ganga Bhishen Agarwal in the 1940s who hailed from Bikaner, Rajasthan. The Agarwals had a sweet and namkeen shop and were known for their savory bhujia sev. After India gained independence, the family shifted to Kolkata from where they expanded their business pan-India.
Agarwal’s grandchildren split in the early 1990s, dividing the brand into three three geographic entities -east, north and south- to maintain independent operations.
“Days after the east zone entity-Bikaji-listed on the bourses, the other three brothers, who run Haldiram’s in Delhi and Nagpur decided to merge their operations to create one snacking major,” industry experts say.
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CCI approves demerger of FMCG business of Haldiram Snacks & Haldiram Foods - Exchange4Media
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