SpaceX backer to acquire 6% stake in Haldiram's for $620M
What's the story
Alpha Wave Global, backed by UAE's Sheikh Tahnoon bin Zayed's business empire, is set to buy a 6% stake in Haldiram Snacks Food for ₹5,160 crore (roughly $620 million).
This deal would make Alpha Wave Global the second major investor in India's top snack and convenience foods company, following Temasek's acquisition of 9% stake at ₹86,000 crore valuation this month.
The total promoter dilution from these deals amounts to estimated 15%, making it India's largest private equity consumer deal yet.
Stake sale process
Alpha Wave's involvement in Haldiram's stake sale process
Alpha Wave Global, which backed SpaceX and raised one of 2022's largest venture funds, was a late entrant into Haldiram's stake sale process, which had been underway for nearly a year.
The fund entered the race against two competing consortiums led by buyout groups Blackstone and Bain Capital.
However, unlike Temasek, Alpha Wave won't be taking a seat on Haldiram's board.
Apart from SpaceX, Alpha Wave's global portfolio includes companies such as Lyft, Klarna among others.
Company profile
Haldiram's diverse product range and financial performance
Haldiram's, a dominant player in the snack space, has a wide product portfolio from fresh, frozen and salty snacks, sweets, ready-to-eat, pre-mixed foods to non-carbonated ready-to-drink beverages.
The company had a revenue of ₹12,800 crore in FY24, with an EBITDA of ₹2,580 crore and a net profit of ₹1,400 crore as per RoC filings.
This gives it a valuation multiple of 6.7 times sales.
Market outlook
Market trends and future projections
The domestic snacks market was valued at ₹42,694.9 crore in 2023 according to IMARC Group, and is projected to more than double to ₹95,521.8 crore by 2032.
However, a rival snacks food maker cautioned that Indian consumers are rapidly shifting toward healthier options like millet namkeens and protein bars which newer brands are catering to more than Haldiram's is able to do.