Prataap Snacks Shareholders Explore Exit; Haldiram, ITC, PE Funds Among Potential Suitors

Prataap Snacks Ltd, the company behind the Yellow Diamond brand, could see a significant change in ownership. According to people familiar with the matter, major stakeholders led by Authum Investments & Infrastructure Ltd (AIIL) and investor Madhusudan Kela have initiated exploratory discussions to sell their stake, reaching out to large rivals such as Haldiram, ITC, Advent-backed DFM Foods, and global private equity funds.

The move comes as Prataap struggles with stagnant growth in the impulse pack segment, combined with volatile raw material costs. The ₹47,000-crore Indian snacks market remains highly competitive, with established players like Parle, Balaji Wafers, Crax, Bikanervala, and new-age D2C brands such as Baked BRB, Sweet Karam Coffee, and Chitale Bandhu intensifying the fight for market share.

Shareholding and Recent Acquisition

AIIL, led by Sanjay and Alpana Dangi, is currently the single-largest stakeholder with a 42.93% voting share as of June 2025. The founding Kumat family, along with Arvind Mehta, owns 11.99%, while Madhusudan Kela holds 7.41% through personal and investment entities. Other investors include Fearing Capital (2.01%) and Malabar India Fund (1.45%).

Authum had only recently entered Prataap Snacks in September 2024, acquiring shares through an open offer at ₹865.66 per share and preferential allotment at ₹746 per share, making Prataap its associate company. By February 2025, Kela and AIIL jointly held 46.87%.

An exit by both Authum and Kela could put over 55% of the company up for sale, potentially triggering an open offer for an additional 26%. However, sources stressed that these are preliminary conversations, and no transaction is assured.

Valuation Concerns

Industry insiders suggest that Prataap is trading at 3.3x its book value, lower than the richer multiples seen in recent consumer deals. This may discourage an immediate sale.

“Both Authum and Kela have only recently invested and are expected to give at least 4–6 quarters to turn the business around. They are financial investors, not on the board, and at the right price, they may sell,” said a source aware of the discussions.

Analysts highlight that the company’s EBITDA margin remains vulnerable due to heavy reliance on low-unit packs, restricting its ability to raise prices amid fluctuating input costs.

Strategic Focus Areas

Despite ownership uncertainty, Prataap’s management has identified Delhi, Haryana, Madhya Pradesh, Maharashtra, and Assam as “command markets,” where it will strengthen range selling. Meanwhile, Uttar Pradesh, Bihar, Gujarat, and South India are tagged as “expand markets,” offering significant headroom for growth.

In eastern India, a highly price-sensitive region, the company is betting on its pellet portfolio under the Yellow Diamond label, including puffs, rings, wheels, and its popular Chulbule line. Additionally, Prataap plans to leverage Avadh Snacks’ distribution infrastructure to consolidate presence in key growth zones.

The latest development comes at a time when Haldiram is preparing an aggressive expansion plan after raising $1 billion at a $10 billion valuation, signaling heightened consolidation activity in India’s packaged snacks sector.