The Competition Commission of India (CCI) has approved the proposed combination involving the demerger of the FMCG business of Haldiram Snacks and Haldiram Foods into Haldiram Snacks Food.
According to a press release, the existing shareholders of Haldiram Snacks and Haldiram Foods have acquired a 56 percent and a 44 percent stake, respectively, in Haldiram Snacks Food.
Haldiram Snacks, based in Delhi, is a manufacturer and distributor of packaged food products in India, including snacks, namkeen, sweets, ready-to-eat/pre-mix food, frozen food, biscuits, non-carbonated ready-to-drink beverages, and pasta, among others. Its operations are primarily run by Manohar Agarwal and Madhu Sudan Agarwal.
Similarly, Haldiram Foods, based in Nagpur, is also engaged in the manufacture and distribution of packaged food products such as snacks, namkeen, sweets, ready-to-eat/pre-mix food, biscuits, cookies, non-carbonated ready-to-drink beverages, and pasta, among others. Its operations are primarily run by Kamalkumar Shivkisan Agrawal.
Following the proposed transaction, the newly incorporated Haldiram Snacks Food will undertake the FMCG business that is currently undertaken by HFIPL and HSPL, respectively. The FMCG business will collectively comprise the FMCG business currently undertaken by HSPL and HFIPL and their respective subsidiaries/affiliates.
The demerger and acquisition are expected to have a significant impact on the FMCG market in India, as Haldiram Snacks and Haldiram Foods are two of the leading players in the industry. The approval from the CCI is a crucial step in the process, and the companies involved are expected to move forward with the transaction in the coming months.
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