I'm so glad Haldiram's isn't selling out! It's emerging that the company is going solo, only selling 10-15% for $1 Billion to Temasek, before going the IPO way.
Haldiram's is an iconic company built in the legendary Indian family business way. There's nothing that Tata (or, Bain, or anyone else) could have offered them that they couldn't have done themselves. The company has a universally loved, extremely well run, really profitable brand which has the potential to be a global force to be reckoned with. They achieved it all independently, and there's no reason they couldn't have taken it to the next level all by themselves. Glad that they decided against selling out.
Just for a thought, Haldiram's has total market dominance which can get even more pronounced in times to come. And the overseas business for them (even though substantial in absolute terms) has only just begun. From restaurants to packaged food, Haldiram's could be India's McDonald's. Or something even bigger than that. McDonald's is a $200 Billion company. Why should have Haldiram's stopped at $10 Billon?
When in 2023, it came out that Tata's were looking at buying out Haldiram's, it was frankly quite a disturbing news. Because I believe it's important for the Indian ecosystem that a market like Food & FMCG doesn't become a playground for a few global majors and huge Indian conglomerates alone. There should be a diverse mix of players, up and coming and independent, who have the potential to dethrone the giants themselves. Who knows? Haldiram's could be as big as Tata someday.
That might sound stupid and funny right now. But it won't be as funny if a few big markets in the west click for the company. India is a growth story. Indians are everywhere. What if Haldiram's becomes the face of Indian food, across the globe? I sincerely believe the Haldiram's story (though a hundred years old), has only just begun. It'd be lovely to watch it raise money and grow independently.
I'm sure turning down the opportunity to cash out $5 Billion (₹40,000 Cr) was very hard for the family. But I'm glad they resisted the urge, thereby avoiding the fabled "third generation curse" of family run businesses. After all, after reaching that level of success, someone's got to think about "legacy", right?
Here's wishing Haldiram's a lot of luck for the next phase of their journey. Can't wait for India's very own McDonald's to rule the world!
P.S. While building SpotHealth, I read the biography of Haldiram's called Bhujia Barons. Written by Pavitra Kumar, it's an EXTRAORDINARY book. Perhaps one of the best to have come out of India. Highly recommend it! :)
Also, do you think Haldiram can ever be a $100 Billion company? Vote on this poll on Virtual Voter app: https://lnkd.in/g9GvSBiG
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