Haldiram's in talks to buy rival snack maker Prataap

SNACKS MAKER HALDIRAM'S is in talks to acquire a majority stake in listed rival Prataap Snacks, which is valued at $350 million, to expand its presence in the potato chip market, two people with direct knowledge of the matter said.

- M SRIRAM

Prataap Snacks shares jumped about 13% to their highest levels since 2018 after the news, before paring some gains to close 9.7% higher.

The talks are at an early stage and a valuation has not been discussed, though it could be at a premium to Prataap's stock price. Haldiram's is considering a majority stake of at least 51%, but a final number has not been decided, said the sources, who declined to be named as the discussions are confidential.

Prataap is best known for its Yellow Diamond brand of chips and competes with Pepsi's Lay's brand and other snack-makers in a market where local, unorganised food sellers still dominate the fried chips segment.