There’s been some exciting gossip in the world of snacks and food items. The rumour says that Tata Consumer Products, a big company, was considering buying a major part of Haldiram’s. Haldiram’s is a famous company that makes tasty snacks and food items which many of us love and for some, can’t live without them. Both companies have said these rumours aren’t true( yeah, sure the deal didn’t pan out, lol.), but there’s one part of this tale that keeps people talking – Is Haldiram’s worth freaking $10 billion( REALLY )?
The Mysterious Number – $10 Billion ( HALDIRAM’S VALUATION) : The TATA Consumer Products Deal
$10 billion is a lot of money (₹80,000 crore approx.). But, is Haldiram’s worth that much? To figure this out, we need to look at how much money Haldiram makes. In the last financial year, two parts of Haldiram’s, called Haldiram Foods International Private Limited and Haldiram Snacks Private Limited, made a total of ₹ 8,870 cr.
Now, let’s talk about Bikaji Foods, another company that makes snacks like Haldiram’s. Their value is calculated to be Rs 12,864 cr, which is 6.5 times what they’re expected to earn in the next financial year. In comparison, that rumoured $10 billion for Haldiram’s is a lot more! It’s like saying that the entire company is worth 10 times of what it earns in a year. Is Haldiram’s worth that much? Market standards show a 3x valuation to be reasonable but being a legacy brand and the goodwill generated over the years a valuation of 6.5x the same as its competitor Bikaji seems fair.
HALDIRAM’S $10 Billion VALUATION
HaldiRam’s Reign Over the Snacks Kingdom
Haldiram’s isn’t just any snack company. It’s been around since the 1930s and has a big chunk of the snack market in India (38.5% to be exact). This means more than 1 in 3 snacks bought from this market are Haldiram’s products! Haldiram commands a brand value in the snack industry like no other brand, the distribution network is very good.
Also, the snack industry is growing. Right now, it’s worth Rs 114 billion, but by the year FY26, it’s expected to be almost double, Rs 204 billion. Seems the potential for Haldiram to tap into this growth is what the valuation of 10 Billion Dollars is trying to show.
Tata’s Mission for Snacks
Coming to Tata Consumer Products, this company wants to have more snack items in its product list. Buying most of Haldiram’s would have given them just that. So, while Haldiram’s is the snack king, Tata Consumer Products wants to wear that crown too. Tapping into the snacking market will be just another feather in the Crown for them.
The Chatter Continues
This speculative $10 billion deal has everyone furiously talking. Some folks are questioning if Haldiram’s is worth that big number, while others are imagining what would happen if such a huge deal took place. However, amidst these brewing discussions, both Tata Consumer Products and Haldiram have stated that no such deal is going on. No Brand or Company would like to own a failed deal as in this news-sensitive market things change at a rapid pace.
Wrapping It Up
So, is Haldiram’s worth $10 billion? There’s no definite answer. The fact that Haldiram’s has been so successful and has so many people buying their snacks suggests that it could be. Even though Tata Consumer Products and Haldiram have denied any deal, the very thought of it has got people pepped up. We’ll just have to wait and see if this snack story has any true hidden flavours that are yet to emerge!
Frequently Asked Questions (FAQs)
What is Haldiram’s reported valuation?
Rumors are suggesting a potential $10 billion valuation for Haldiram’s.
Is Haldiram’s really worth $10 billion?
Although there is no confirmed valuation, speculation around this figure continues given Haldiram’s significant market share and revenue in the snack industry.
Why has the $10 billion valuation for Haldiram’s become a talking point?
The reported valuation indicates a sizeable valuation, around 10 times the annual revenue of Haldiram’s, which has led to debate about whether such a high value is justified.
Who was rumored to be interested in purchasing Haldiram’s?
Tata Consumer Products was rumored to be considering buying a part( 51 % ) of Haldiram’s, although it has officially denied any such plans.
What is the basis for Haldiram’s speculated valuation?
Haldiram’s holds a dominant position in India’s snack market with a share of 38.5%. Coupled with the projected growth of the snack industry makes for a sizeable valuation.
Why would Tata Consumer Products be interested in Haldiram’s?
If this rumor was true, buying into Haldiram’s would help Tata Consumer Products boost their presence in the snack sector, a market they are keen to expand into.
How has Haldiram’s and Tata responded to the rumors?
Both Tata Consumer Products and Haldiram’s have categorically denied the rumors regarding any business transaction.
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