The Competition Commission of India (CCI) has given its approval for the demerger of the FMCG business of Haldiram Snacks and Haldiram Foods, as well as the subsequent acquisition of shareholding in the new entity, Haldiram Snacks Food. This article provides an overview of the companies involved, the FMCG business, and the proposed steps for the demerger and acquisition.
Overview of Companies Involved
1. Haldiram Snacks Private Limited (HSPL)
Haldiram Snacks, headquartered in Delhi, is a leading manufacturer and distributor of packaged food products in India. The company offers a wide range of products such as snacks, namkeen, sweets, ready-to-eat meals, pre-mix food, frozen food, biscuits, non-carbonated ready-to-drink beverages, and pasta. The operations of HSPL are primarily run by Mr. Manohar Agarwal and Mr. Madhu Sudan Agarwal (Delhi Family).
2. Haldiram Foods International Private Limited (HFIPL)
Haldiram Foods, based in Nagpur, is also engaged in the manufacture and distribution of packaged food products. Their product offerings are similar to those of Haldiram Snacks, including snacks, namkeen, sweets, ready-to-eat meals, biscuits, cookies, non-carbonated ready-to-drink beverages, and pasta. The company’s operations are primarily run by Mr. Kamalkumar Shivkisan Agrawal (Nagpur Family).
3. Haldiram Snacks Food Private Limited (HSFPL)
Haldiram Snacks Food is a newly incorporated entity that currently does not undertake any business operations. After the proposed transaction, HSFPL will undertake the FMCG business that is currently being managed by HFIPL and HSPL.
FMCG Business Overview
The FMCG (Fast Moving Consumer Goods) business, also known as the packaged foods business, comprises the collective operations of HSPL and HFIPL, along with their respective subsidiaries and affiliates.
Proposed Combination Steps
The demerger and acquisition process involves the following steps:
i) Demerger: The respective FMCG businesses of HSPL and HFIPL, along with their various associates and subsidiaries, will undergo a demerger through an NCLT (National Company Law Tribunal) approved Scheme of Arrangement.
ii) Acquisition: Following the demerger, the existing shareholders of HSPL and HFIPL will acquire 56% and 44% shareholding in HSFPL, respectively.
The detailed order from the CCI regarding this approval will be released soon. With this approval, the proposed combination is expected to bring together the FMCG business under one entity, potentially streamlining operations and creating a more unified brand presence in the Indian market.