Just Food

Daily Newsletter

07 September 2023

Daily Newsletter

Tata Consumer Products denies talks over Haldiram’s deal

The Indian major was reported to be looking to acquire 51% of the local snacks group.

Tata Consumer Products has brushed off a report the group was in talks to buy a majority stake in Indian peer Haldiram’s.

Reuters had reported discussions were taking place over a deal for 51% of Haldiram’s, a household name in India’s snack foods market.

However, in response to a request from more information from the Bombay Stock Exchange, Tata Consumer Products denied talks were being held.

“The company is not in negotiations as reported [by Reuters],” Tata Consumer Products said in a stock-exchange filing.

“We would like to add that the company evaluates various strategic opportunities for growth and expansion of the business of the company on an ongoing basis.”

Tata Consumer Products, home to brands including Tata Soulfull and Tetley Tea, said it would “make appropriate announcements” in compliance with its listing obligations.

In July, the company reported a 12% in second-quarter revenue to Rs37.41bn. The growth contributed to a 22% increase in net profit to Rs3.38bn.

“We will stay focused on driving profitable growth while making consistent progress in our transformation journey towards becoming a leading FMCG company,” MD and CEO Sunil D’Souza said at the time.

Rising disposable income and health consciousness set to drive the healthy snacks market

The global healthy snacks market will be valued at $74.6 billion in 2023 and is expected to grow at a CAGR of 6% by 2030, per GlobalData. Increasing awareness of health and wellness among consumers is the major contributor to the growing demand while a rise in vegan and plant-based diets and rising disposable income, and middle-class expansion are also expected to drive market growth. However, this growth is affected by the challenges posed by high cost of ingredients.