Shares of Tata Consumer Products Ltd (TCPL) shot up over 4 per cent on reports that it is in talks to acquire 51 per cent of snack food maker Haldiram’s.

However, the Tata group firm denied the report. Responding to a clarification sought from the stock exchanges, TCPL said, “The company is not in negotiations as reported.”

The company, however, added that it evaluates various strategic opportunities for growth and expansion of its business on an ongoing basis.

“The company will make appropriate announcements in compliance with the
obligations under Sebi (LODR) Regulations, 2015, as and when any such requirement arises,” TCPL added.

While the clarification came after market hours, the Reuters report led to its shares ending with gains of 4.04 per cent, or Rs 34.15, at Rs 879.90 on the BSE.

This is not the first time that TCPL is in the news for a potential acquisition. Last year, the company was engaged in negotiations with the Chauhan’s of Bisleri to acquire their packaged water business. However, after eight months, the talks did not proceed and the company came out with a statement in March saying that the negotiation with Bisleri International has “ceased”.

Earlier in the day, a Reuters report said TCPL is in talks to buy at least 51 per cent of Haldiram’s. The report, however, said Haldiram’s has sought a valuation of $10 billion, which the Tata group firm is not comfortable with.

If TCPL successfully concludes this deal, it will be competing against the likes of Pepsi, which has brands such as Lays in its portfolio. The report added that Haldiram’s is also talking with private equity firms, including Bain Capital, about the sale of a 10 per cent stake. The company has around 13 per cent share of India’s $6.2 billion savoury snack market, according to Euromonitor International.

TCPL owns brands such as Tata Salt, Tata Tea, Tetley, Tata Coffee, Tata Soulfull and Eight O’clock in the tea, coffee and beverages segments and Himalayan, Gluco+ in the liquid beverages .

In April this year, the Competition Commission of India (CCI) had approved a combination involving the demerger of the FMCG business of Haldiram Snacks and Haldiram Foods into Haldiram Snacks Food Pvt Ltd (HSFPL).

Haldiram Snacks Pvt Ltd and Haldiram Foods International Pvt Ltd are engaged in the manufacturing of packaged food items.