Haldiram gets CCI nod for demerger of FMCG biz of Haldiram Snacks & Haldiram Foods

The Competition Commission of India (CCI) has approved the proposed combination involving demerger of FMCG business of Haldiram Snacks and Haldiram Foods into Haldiram Snacks Food and acquisition of 56% and 44% shareholding in Haldiram Snacks Food by existing shareholders of Haldiram Snacks and Haldiram Foods.

Haldiram Snacks is engaged in the manufacture and distribution of packaged food products in India such as snacks, namkeen, sweets, ready to eat/ pre-mix food, frozen food, biscuits, non-carbonated ready to drink beverages, pasta, etc. Headquartered in Delhi, HSPL’s operations are primarily run by Manohar Agarwal and Madhu Sudan Agarwal (Delhi Family).

Haldiram Foods International is similarly engaged in the manufacture and distribution of packaged foods products such as snacks, namkeen, sweets, ready to eat/ pre-mix food, biscuits, cookies, non-carbonated ready to drink beverages, pasta, etc. Headquartered in Nagpur, HFIPL’s operations are primarily run by Kamalkumar Shivkisan Agrawal (Nagpur Family).

Haldiram Snacks Food is a newly incorporated entity that currently does not undertake any business operations. Post the proposed transaction, HSFPL would undertake the FMCG business that is currently undertaken by HFIPL and HSPL, respectively.

The FMCG business (that is, the packaged foods business) would comprise collectively of the FMCG business currently undertaken by HSPL and HFIPL and their respective subsidiaries/ affiliates.

The proposed combination involves the following steps:

A demerger of the respective FMCG businesses of HSPL and HFIPL (currently housed under HSPL and HFIPL and their various associates/ subsidiaries), through NCLT approved Scheme of Arrangement (Scheme);

Pursuant to the Scheme, the acquisition of 56% and 44% shareholding in HSFPL by the existing shareholders of HSPL and HFIPL (collectively, Proposed Combination).