India’s ethnic snacks market, valued at ₹42,695 crore ($5.12bn) in 2023 and projected to nearly double to ₹95,522 crore ($11.46bn) by 2032 (according to the IMARC Group), has become a battleground for global investors. Reports suggest PepsiCo and investment companies Singapore-based Temasek and New York-based Alpha Wave Global are competing for a 10-15% stake in Haldiram Snacks, valued at an estimated ₹85,000-90,000 crore ($10.2bn-$10.8bn). This is a pivotal moment, marking the first time the Agarwal family has considered external investment.
Founded in 1937 by Ganga Bishan Agarwal (Haldiram Ji) as a small namkeen shop in Bikaner, Rajasthan, Haldiram has grown into India’s largest and most iconic food brand. Its product portfolio boasts over 500 offerings, from namkeen (savoury snacks) like bhujiya (spiced fried gram flour noodles) and chivda (a spiced mixture of flattened rice and nuts) to mithai (sweet snacks) like ladoos (sweet balls made from flour, sugar, and ghee) and gulab jamun (fried dough balls soaked in sugar syrup), as well as ready-to-eat meals. With operations in over 80 countries through 1,000+ distributors and FY24 revenues exceeding ₹12,800 crore ($1.55bn), Haldiram dominates the ethnic snacks market, outpacing competitors such as PepsiCo India’s snacks division, which reported ₹4,763 crore ($571.56m) in the same period.
Despite being family-run, the brand maintains a unified identity and continues to innovate with healthier snacks, instant meals, and fusion foods. Additionally, Haldiram operates over 300 restaurants across India and has made its flagship Bikaneri Bhujiya a symbol of authentic Indian flavours, earning a Geographical Indication (GI) tag.
High stakes bidding war
PepsiCo has reportedly initiated talks with the Agarwal family, aiming to secure a minority stake that could position it as a major player in India’s ethnic snacks segment. While PepsiCo holds a 24% share of the western snacks sector, it has limited presence in ethnic snacks like namkeen. A partnership with Haldiram would grant access to a diverse product range and a robust distribution network reaching millions of retail outlets.
However, PepsiCo faces challenges. Its entry into the bidding process lags behind Temasek and Alpha Wave Global, which have already submitted binding offers exceeding $1 billion. Temasek, owned by the Singapore government, is reportedly leading negotiations. Additionally, the Agarwal family’s high valuation expectations and historical reluctance to dilute control complicate matters. Previous talks with global giants like Kellogg’s, Mondelez and Tata Consumer have failed to result in agreements.
India’s evolving snacks market
India’s snacks market has transformed significantly, with ethnic snacks gaining popularity for their local appeal, affordability, and traditional flavours. Regional players like Bikanerwala, Balaji, and Bikaji Foods have captured consumer loyalty by offering competitive prices and efficient distribution. Despite this competition, Haldiram remains the market leader, driven by its extensive product range and strong brand reputation.
PepsiCo’s past acquisitions, such as Uncle Chipps in 2000, reflect its efforts to expand in India. However, long-term growth in a price-sensitive market like India requires more than acquisitions. Collaborating with Haldiram could allow PepsiCo to bridge its gap in the ethnic snacks category, tapping into a high-growth sector projected to dominate the market in coming years.
Haldiram’s global appeal and dominant market position make it an attractive investment target, but the deal remains uncertain. Analysts suggest the Agarwal family may hold out for a premium valuation or explore a majority sale given the strong interest from multiple investors.
Regardless of the outcome, this high stakes bidding war will have far-reaching implications for India’s snacks market. A partnership between PepsiCo and Haldiram could reshape the competitive landscape, influence consumer preferences, and set new benchmarks in one of India’s fastest-growing industries.
Rose Media Group to strengthen Haldiram UK’s presence
Meanwhile, Sussex-based PR agency Rose Media Group (RMG) has been appointed to spearhead Haldiram UK’s marketing efforts.
“We’ve proudly championed the brand for the past eight years, and this partnership reflects the power of perseverance and passion,” said Aneela Rose, MD of RMG. “We’re thrilled by the opportunities ahead to elevate their profile and establish their products as household favourites across the UK.”
Leading this expansion is Rhea Agarwal, a third-generation member of the Agarwal family, who is driving Haldiram’s growth in the UK and EU markets. Her strategy celebrates Haldiram’s rich legacy while bridging the gap between tradition and innovation to reach diverse audiences.
“Rose Media was absolutely the natural choice for us,” said Agarwal. “Their loyalty, integrity, and deep understanding of our brand is nothing short of incredible. Their passion and experience are exactly what we need as we use PR for the first time to promote our homegrown brand.”
RMG’s appointment underscores Haldiram’s growing international appeal and highlights the potential for Indian ethnic snacks to achieve mainstream recognition worldwide.