CCI approves demerger plan of Haldiram Group's FMCG business

The Competition Commission of India (CCI) on Monday has approved the demerger plan of Haldiram Group.

The CCI gives green signal to 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 Private Limited (HSPL/Haldiram Snacks), headquartered in Delhi 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.

Haldiram Foods International Private Limited (HFIPL/ Haldiram Foods), headquartered in Nagpur 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.

Haldiram Snacks Food Private Limited (HSFPL/ 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.

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 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.