The Delhi-based Haldiram Snacks and Nagpur-based Haldiram Foods International are planning to merge their operations ahead of their initial public offering (IPO) debut, CNBC TV-18 reported citing sources.
The two separate business entities that offer Indian snacks products under the popular Haldiram’s brand are run by brothers who parted ways in 1980. Hadiram’s Nagpur dominates the west and south India markets.
The media publication quoted data from a survey that says both the Haldiram companies combined hold a 48.5% share in India’s ethnic snacks market and an 8.6% share in the western snacks market. Their combined revenue is Rs 9,000 crore.
The plan comes in the backdrop of another Indian snacks company, Bikaji, making an impressive market debut. Their offer was oversubscribed 26.67 times on November 7, the final day of bidding, receiving bids for 55.04 crore shares against the IPO size of 2.06 crore shares.
Haldiram’s and Bikaji are run by four brothers – Shiv Kishan, Manohar Madhusudan and Shiv Ratan Agarwal. Their grandfather Ganga Bishan Agarwal founded the original Haldiram snacks company in 1932.
Shiv Ratan now runs Bikaji, Shiv Kishan owns the Nagpur Haldiram’s while Manohar Madhusudan and Shiv Ratan operate the Delhi Haldiram’s, the report said.