PepsiCo joins bidding for Haldiram stake.

PepsiCo has entered the competition to acquire a minority stake in Haldiram Snacks Food, as the global snack giant has initiated talks with the Aggarwal family, as per an Economic Times report. This development comes as Temasek and Alpha Wave Global, already in advanced discussions, made firm offers last month to acquire a 10-15 percent stake in Haldiram.

PepsiCo’s discussions, which are still in the exploratory phase, may not result in a finalised agreement, states the ET report. The talks, led by PepsiCo's headquarters in New York, are aimed at clinching a minority stake in Haldiram, with the parent company expected to provide the funding, while PepsiCo India’s leadership plays a smaller role in the process.

Temasek, a Singapore-based investment firm, early this month, emerged as the frontrunner after over 18 months of intense negotiations. As per industry sources, it is poised to acquire a minority stake in Haldiram Snacks Foods Private Ltd, which combines the FMCG operations of the Delhi and Nagpur branches of the Indian multinational snacks company, as per a Moneycontrol report.

The Aggarwal family is seeking a valuation between Rs 85,000-90,000 crore as it considers bringing in an external investor for the first time, further noted the Economic Times report. PepsiCo’s entry into the Indian ethnic snacks market comes amid rising competition from regional players. The sector is increasingly fragmented, with local brands such as Bikanerwala, Balaji, Bikaji Foods, Gopal Snacks, and Prataap Snacks gaining ground by offering lower prices, direct-to-consumer distribution, and better margins for retailers.