Owners, Not Investors: Temasek On Haldiram's
The investment firm had announced a Haldiram's deal in late March, having entered into an agreement to acquire an equity stake in the company from its existing shareholders.
Singapore-based investment firm Temasek considers itself to be an owner of Haldiram's rather than an investor and will continue to influence the snack giant's future.
"We think of ourselves as owners of the company. We are not investors who are in the firm for a certain number of years," Vishesh Shrivastav, managing director of Temasek's India Investment division, told NDTV Profit in an interview. "We will continue to influence and shape the future of the company."
The investment firm had announced a Haldiram's deal in late March, having entered into an agreement to acquire an equity stake in the company from its existing shareholders.
The Competition Commission of India later approved the transaction, carried out through Temasek unit Jongsong Investments Pte. The deal involved acquiring less than 10% of the issued and paid-up equity share capital of Haldiram Snacks Food Pvt.
Haldiram Snacks Food represents the combined business of the Delhi and Nagpur factions of the Haldiram family. The National Company Law Tribunal has already cleared the merger of these two fractions, with other regulatory approvals still pending.
While raising its stake in Haldiram's is not something that is required for Temasek at this point, the firm will continue to evaluate opportunities as and when they arise, Shrivastav said.
"The Haldiram's story is one that you will hear more about as we go forward, and I am optimistic that it will turn out well for all stakeholders," he explained without giving further details.
Temasek, Shrivastav said, has been a very big investor in India's food space. "We have been large investors in Eternal Ltd., Devyani International Ltd., Licious, Healthkart, Rebel Foods and Country Delight. The theme of investing in food has worked well for us, and I believe it has many more legs to go," he said.
Temasek's annual report recently revealed that its India portfolio grew to $50 billion on a mark-to-market basis from $35 billion a year ago. Shrivastav said that the company invested $3 billion each over the last two years, and sees the momentum continue this year as well.
Shrivastav said India is the best-performing market for Temasek globally, and it sees some of its investee companies headed for an IPO over the next few quarters.
A number of Temasek's portfolio firms are in the process of getting listed in the near future, including Manipal Hospitals, Shrivastav said. "The cycle of investing, improving and monetising is working quite well for our portfolio companies," he said.
