Nagpur-based snack and savoury titan Haldiram's has secured a fresh round of private equity funding, this time from the global consumer-focused investor L Catterton. This strategic move comes as the iconic Indian food brand actively prepares for a future initial public offering (IPO) and explores a potential partnership to launch the American sandwich chain Jimmy John's in the Indian market.
A Strategic Minority Stake from a Global Giant
Sources close to the development confirmed that the US-based multinational investment firm L Catterton has acquired a stake in Haldiram's. They clarified that this is a micro investment, representing only a minute fraction of the overall shareholding of the company. Another source reiterated that a very small number of shares were involved. The exact financial details of the transaction have not been disclosed by L Catterton.
Despite the modest size of this particular investment, it is seen as a significant vote of confidence in Haldiram's business and the substantial valuation it has achieved recently. This development follows a major investment earlier this year by Singapore's Temasek and Alpha Wave, which valued the combined Haldiram's entity at a staggering ₹84,000 crore.
Fueling Growth and a Future Public Listing
In an official statement released on Thursday, L Catterton outlined its vision for the partnership. The firm stated that it will work with Haldiram's to "endeavour to foster a global India for the world brand." This ambitious goal will be pursued through a series of initiatives aimed at unlocking further value.
The planned areas of collaboration include:
- Brand building and marketing.
- New product development.
- Supply chain and distribution network optimisation.
- Geographic expansion within and beyond India.
- Talent development and organisational strengthening.
L Catterton also highlighted that Haldiram's would benefit from the expertise of its executive chairman, Sanjeev Mehta, the former CEO of FMCG behemoth Hindustan Unilever. This investment and strategic guidance are occurring in the lead-up to Haldiram's long-anticipated plans to launch an IPO.
Exploring New Avenues: The Jimmy John's Connection
Parallel to the financial investment, Haldiram's is actively exploring new business frontiers. The company is currently in discussions with Inspire Brands, the American restaurant giant that owns Jimmy John's, Arby's, Buffalo Wild Wings, and Baskin Robbins.
The talks are focused on exploring the possibility of manufacturing and selling Jimmy John's sandwiches in India. While the fast-food brand is a major presence in the United States, it has not yet entered the Indian market. Sources indicate that these negotiations are still ongoing, and no final agreement has been reached.
This potential venture represents a strategic diversification for Haldiram's, which started with humble beginnings as outlets selling sev and other Indian vegetarian snacks. The company's journey to its current valuation involved the merger of the businesses run by two branches of the Agrawal family in Nagpur and Delhi—Haldiram's Foods and Haldiram's Snacks, respectively. This merger and subsequent valuation were also key steps in consolidating the entity for its eventual public offering.
