One of the country's most popular snacks and sweet maker, Haldiram's, is looking to expand its footprint and mulling an initial public offering (IPO) with Noida's Haldiram Snacks and Haldiram's Nagpur in the process of merging, according to a media report.
The new entity is looking to invest Rs 2,000 crore to Rs 2,500 crore after the fundraising exercise, over the next five years, to expand its capacity.
"We don't have a concrete dialogue going on for listing at this point. We are thinking about an IPO to explore the value within the organisation. Apart from that, we are open to listening to external investors and we are always welcome to suggestions," Avin Agarwal, director of Haldiram Foods, told Business Standard. He added "We are not looking to raise capital to just get cash. If at all we raise capital, that would be to expand. But right now, whatever we are doing is with internal accruals."
Agarwal said the businesses are merging because of higher competition in the sector and it would be easier to stave competition as a combined entity. He also shared the merger would take place over the year itself.
Currently, the snacks and sweets verticals of the businesses are merging and the restaurant parts will be merged at a later date.
"We are entering a lot of new markets in terms of snacking, as well. The snacking industry is growing at approximately 20 per cent. We hope to catch that trend," Agarwal also told BS, adding that he is looking to expand the beverages business and has plans to expand into the hotels, restaurants, and catering channel.
As per Haldiram's Nagpur, the snacks part of the business is growing at 13 per cent. Capitaline data shows Hadiram Snacks saw its consolidated revenue at Rs 5,195 crore in FY22. Meanwhile, in the traditional namkeens sector, the combined entity has a market share of 50 per cent and it has a 60 per cent market share in the organised space.
Published 29 March 2023, 09:05 IST