In a significant move within India's fast-growing consumer goods sector, global investment firm L Catterton has announced a strategic investment and partnership with the iconic snack food company, Haldiram Snacks Food Pvt. Ltd. This deal, announced on Thursday, underscores the rising private equity interest in India's branded snacks and packaged foods landscape, though the financial details remain undisclosed.
A Strategic Alliance for Domestic and International Growth
The core objective of this partnership is to propel Haldiram's next phase of growth. The alliance will leverage L Catterton's extensive experience in building consumer brands worldwide to strengthen Haldiram's position in its home market and significantly expand its footprint in international territories. The investment firm stated that the collaboration will focus on driving operational value creation through several key initiatives.
These initiatives are expected to include enhancing product development, improving supply chain efficiency, broadening the distribution network, and building stronger organizational capabilities. A key figure in this engagement will be Sanjiv Mehta, the former chairman of Hindustan Unilever, who now serves as executive chairman for India at L Catterton.
"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," Mehta commented. He expressed delight at backing the brand to drive growth in India's flourishing consumer market and to galvanize its internationalization efforts.
Riding the Wave of India's Packaged Snacks Boom
This investment arrives at a time when India's packaged snacks market is experiencing robust and steady expansion. According to data from the IMARC Group, the domestic snacks market was valued at a substantial ₹42,694.9 crore in 2023. The research firm projects this market to more than double, reaching an impressive ₹95,521.8 crore by 2032.
This growth is fueled by several factors, including rising urban consumption, a growing consumer preference for hygienic and convenient packaged foods, and a gradual shift away from unbranded, loose products. The market encompasses a wide range of offerings, from traditional Indian namkeen to Western-style snacks, with competition heating up across all price segments.
Intensifying Investor Appetite for Food Brands
The Indian packaged food sector has become a magnet for investor capital in recent years. The trend includes both public market listings, like that of competitor Bikaji Foods in 2022, and consistent private equity investments in emerging and mid-sized brands. L Catterton itself has prior experience in the space, having previously backed Indian snack company Farmley.
Established in 1937, Haldiram's has grown into a multi-category packaged food giant, offering savoury snacks, sweets, and ready-to-eat products. The company sells through a diversified channel mix including general trade, modern retail, quick-service restaurants, and exports. Over decades, it has built an extensive distribution network within India and in key overseas markets with a large Indian diaspora, providing a strong foundation for the new partnership to build upon.
Globally, L Catterton manages capital across private equity, credit, and real estate, with a dedicated focus on consumer businesses. Its investment portfolio in the packaged food sector includes companies operating in snacks, condiments, and ready-to-eat categories across various international markets.
