Is Tata Consumer Products buying Haldiram? Let’s find out

Although the company has dismissed the rumors, it is trending that the Tata Consumer Products division has shown interest in acquiring more than 51% of Haldiram which led it into a direct conflict with Reliance Retail and Pepsi Co.

Tata Consumer Products also owns the Tetley tea brand and the new acquisition would have headway its product listing in the sector. However, Tata was uncomfortable with Haldiram’s $10 billion valuation and its yearly operating profit of $200 million. 

Source: Reuters (1)

Tata Plans & Rivalry

Sources are stating that investing in the old company with minimal growth potential, Tata should rather double down on its $2 billion investment in Tata Neu. Tata New is a consumer supermarket application introduced in April of last year, and recently redesigned.

The application has so far witnessed 10 million+ downloads as of now and has barely scratched the surface of India’s online commerce business which is dominated by Flipkart, Amazon, and Walmart.

The chairman of a Mumbai-based company, N Chandrasekaran holds a handful of paths of which is his firm being the first Indian company to manufacture iPhones. Tata Group is also collaborating with Nvidia Corporation to create an AI Cloud in India. 

Super-applications, Artificial Intelligence, and semiconductor productions, Tata’s chairman is looking to expand in all ways to rival Mukesh Ambani. Reliance Industries Ltd., Ambani’s company also announced a collaboration with chipmaker Nvidia.

Ambani is also considered one of the wealthiest Asian tycoons plans to create a huge language model geared to India’s multilingual populace and a semiconductor venture that is possible in the making as of now. 

Ambani plans on transitioning away from the damaging hydrocarbons and wants his monopoly in the new-age business sector. Ambani is already playing cards ahead in the digital game and Tata Group is trying hard to catch up and take the headway.

Tata Consumer Products Report 2024

Tata Consumer Products have reported a 22% YoY increase in profits in Q1 FY24 summing to a total of ₹337.7 crores and an increased revenue of 12.5% from ₹3,326.8 crore in Q1FY23 to ₹3,741.2 crore in the June quarter of FY24.

The company’s profit before interest, tax, depreciation, and amortization increased by 19% to ₹547 crores in Q1FY24. Meanwhile, according to another report, the company’s stock target price is ₹888.20 which represents a 9% upside potential from current market pricing. 

The company’s stock has been recommended by 24 analysts for a “buy” call and its stock’s day RSI is currently at 64.6. According to advocates, RSI below 30 is considered oversold, and above 70 is considered overbought.

Source: ET (2)

Source: Trendlyne (3)

Haldiram’s Historical Drive

Haldiram is an Indian household brand known to adults, children, and even pets in our families. It is more like a traditional bond we have to bring in Haldiram products on a daily, for an occasion, or any event be it personal or professional.

If there is no Haldiram’s gulab jamun or rasgulla, it simply feels incomplete. Well, let’s have a closer look at this household snacks brand from Bikaner of Rajasthan that has now conquered the hearts of Indians nationwide and apart.

Haldiram started as a teeny tiny shop in the streets of Bikaner of Rajasthan serving traditional sweets and salty snacks. It was founded in 1937 by Shri Ganga Bhishen Agarwal, who later managed to stand out in a market already crowded with “bhujia” merchants.

It slowly and steadily started spreading across Rajasthan and then slowly in the neighboring states which started an incredible adventure for this household snacks brand of India. Haldiram offers a wide range of products under well-known brand names such as:

• Haldiram’s Prabhuji
• Bikanervala
• Bikharam Chandamal
• Bikaji
• Bikano

Name a popular sweet or salted snacks-related brand name, and you will find its ancestral connection with Haldiram. Such a broad portfolio simply indicates success. The brand was instrumental in upgrading the branded snacks category wisely.

This market is expanding and very delicate as consumers transition swiftly as people are very cautious when it comes to the taste of their namkeen. Consumers are also slowly and steadily stopping to rely on unbranded products and adapting wisely with branded products like Haldiram for even smaller snacks, or higher sweet products.

Today, Branded items are more prevalent on e-commerce platforms that compete majorly with regional and loose brands. Rising urbanization, per capita income, and increased brand consciousness are driving the shift from unbranded to branded products. 

Haldiram survived the change and shall do so in the future as the brand ideally invested in branding and also maintaining the local and traditional taste of its products.