L Catterton bets on Haldiram’s as India snacks market heats up

Bengaluru: Consumer-focused global investment firm L Catterton has invested an undisclosed amount in Temasek-backed Haldiram Snacks Food Pvt. Ltd and entered into a strategic partnership as private equity share in India’s snack and packaged food sector continues to grow.

The partnership aims to support Haldiram’s growth in India and expand its presence in international markets by leveraging L Catterton’s experience in consumer businesses and operating capabilities, the investment firm said in a statement on Thursday. Financial terms of the transaction were not disclosed.

Founded in 1937, Haldiram’s operates in multiple packaged food categories, including savory snacks, desserts and ready-to-eat products. The company sells through a mix of general merchandise, modern retail, quick-service restaurants and export channels. Over the years it has built up a sizeable distribution network in India and key overseas markets where there is a large Indian diaspora.

Essentially creating operational value

Under the partnership, Haldiram is expected to focus on initiatives such as product development, supply chain efficiency, distribution expansion and organizational capability development. Sanjiv Mehta, former chairman and chief executive of Hindustan Unilever, is India executive chairman at L Catterton and is expected to play a key role in the firm’s dealings with Haldiram.

“Haldiram’s is an iconic Indian brand that has created a buzz across the country as the undisputed leader in the ethnic snacks category and has significant potential to become a global brand in the packaged snacks space. We are delighted to support Haldiram’s and accelerate its internationalization as well as drive further growth in India’s emerging and evolving consumer market,” Mehta said in a statement.

The deal comes amid steady growth in India’s packaged snacks market. Domestic snack market according to market research firm IMARC Group ₹42,694.9 crore in 2023 and was expected to more than double ₹95,521.8 crore by 2032. This is due to urban consumption, increasing preference for packaged foods and a gradual shift away from unbranded products. The market includes western-style snacks as well as traditional namkeen, and competition is intense across price points.

In recent years, the sector has attracted the attention of both the public market and private capital. Bikaji Foods, another ethnic snacks player, is listed on stock exchanges in 2022, while many private equity firms have invested in emerging and mid-market packaged food brands. L Catterton has previously backed Indian food and snacks companies, including Farmley, as part of a broader focus on consumer businesses.

L Catterton manages capital in private equity, credit and real estate, with investments spanning food, beverage and consumer brands around the world. Packaged food investments include companies operating in the snacks, condiments and convenience food categories in various markets.