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 interest in India’s snacks and packaged foods sector continues to rise.
The partnership is intended to support Haldiram’s growth in India and expand its presence in international markets, leveraging L Catterton’s experience in consumer businesses and operating capabilities, the investment firm said in a statement on Thursday. The financial terms of the transaction were not disclosed.
Established in 1937, Haldiram’s operates across multiple packaged food categories including savoury snacks, sweets and ready-to-eat products. The company sells through a mix of general trade, modern retail, quick-service restaurants and export channels. Over the years, it has built a sizeable distribution network within India and in key overseas markets with a large Indian diaspora.
Operational value creation at the core
Under the partnership, Haldiram’s is expected to focus on initiatives such as product development, supply chain efficiency, distribution expansion and organisational capability building. Sanjiv Mehta, former chairman and managing director of Hindustan Unilever, is executive chairman for India at L Catterton and is expected to play a key role in the firm’s engagement with Haldiram's.
“Haldiram’s is an iconic Indian brand that resonates 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 back Haldiram’s and drive further growth in India’s evolving and flourishing consumer market, as well as galvanise its internationalisation," Mehta said in the statement.
The deal comes amid steady growth in India’s packaged snacks market. According to market research firm IMARC Group, the domestic snacks market stood at ₹42,694.9 crore in 2023, and was expected to more-than-double to ₹95,521.8 crore by 2032. This is driven by urban consumption, increasing preference for packaged foods and a gradual shift away from unbranded products. The market includes traditional namkeen as well as western-style snacks, with competition intensifying across price points.
In recent years, the sector has attracted both public market and private equity interest. Bikaji Foods, another ethnic snacks player, listed on the stock exchanges in 2022, while several private equity firms have invested in emerging and mid-sized packaged food brands. L Catterton has previously backed Indian food and snack companies, including Farmley, as part of its broader focus on consumer businesses.
Globally, L Catterton manages capital across private equity, credit and real estate, with investments spanning food, beverages and consumer brands. Its packaged food investments include companies operating in snacks, condiments and ready-to-eat categories across markets.
