Haldiram Snacks and Haldiram Foods' FMCG business has received approval from CCI
Sumit Rawat
The demerger of Haldiram Snacks and Haldiram Foods' FMCG businesses into a new company called Haldiram Snacks Food was allowed by the Competition Commission of India (CCI) on Monday.
The existing shareholders of Haldiram Snacks and Haldiram Foods have purchased a 56% and a 44% stake in the new firm Haldiram Snacks Food, respectively, in accordance with the CCI order dated April 3.
Snacks, namkeen, sweets, ready-to-eat/pre-mix meals, frozen food, biscuits, non-carbonated ready-to-drink beverages, pasta, and other packaged food products are among those produced and distributed by Delhi-based Haldiram Snacks. Manohar Agarwal and Madhu Sudan Agarwal are mostly in charge of managing it.
Similar to this, Nagpur-based Haldiram Foods manufactures and distributes packaged food items such pasta, biscuits, cookies, non-carbonated ready-to-drink beverages, namkeen, ready-to-eat/pre-mix cuisine, and snacks. Kamalkumar Shivkisan Agrawal is mostly in charge of managing its activities.
After the proposed deal, the FMCG businesses currently run by HFIPL and HSPL, respectively, will be taken over by the newly formed Haldiram Snacks Food.
Given that Haldiram Snacks and Haldiram Foods are two of the top businesses in the sector, the demerger and acquisition are anticipated to have a substantial impact on the FMCG market in India.
The companies involved aim to proceed with the deal in the next months, and the CCI's clearance is an important step in the procedure.
In the 1940s, Ganga Bhishen Agarwal, a native of Bikaner, Rajasthan, founded Haldiram. The Agarwals ran a sweet and namkeen shop and were famed for their savory bhujia sev. The family relocated to Kolkata following India's freedom, where they developed their company throughout India.
In order to retain separate operations, Agarwal's grandkids divided in the early 1990s, separating the brand into three geographical entities: east, north, and south.
The other three brothers, who own Haldiram's in Delhi and Nagpur, agreed to unite their operations to establish one snacking behemoth, according to industry analysts, days after the east zone entity Bikaji floated on the bourses.
