However, sources privy to the matter told Reuters that Tata is grappling with the hefty $10 billion valuation proposed by Haldiram's.
Haldiram's, which is a household name in India, is also talking with private equity firms including Bain Capital about the sale of a 10% stake, sources said.
If the discussions culminate successfully, it will pit the Indian conglomerate directly against global giants like Pepsi and billionaire Mukesh Ambani's Reliance Retail in the fiercely competitive Indian consumer market.
Tata Consumer Products, the conglomerate's arm responsible for a portfolio that includes the UK-based tea company Tetley and a thriving partnership with Starbucks in India, is actively engaged in negotiations to secure its desired stake, sources told Reuters.
While Tata expressed interest in acquiring more than a mere 51% stake, it has conveyed to Haldiram's that the valuation demand is considerably steep, sources said.
The potential acquisition represents an exciting opportunity for Tata, the person said, adding: "Tata (Consumer) is seen as a tea company. Haldiram's is huge in the consumer space and has a wide market share."
This is not the first time a company has evinced interest in the family-run business.
In 2019, US-based Kellogg's expressed interest in buying a stake in Haldiram's and expand beyond the cereal category. However, the talks failed to materialize.
There were also reports of private equity firm General Atlantic looking to buy 10% stake in the food brand.
Haldiram's traces its origins to a humble shop founded in 1937, renowned for its delectable "bhujia" snack, available at mom-and-pop stores across India for as little as Rs 10.
The company has etched out a substantial niche, commanding nearly 13% of India's $6.2 billion savory snack market, according to Euromonitor International.
In a market sharing this spotlight, Pepsi, famous for its Lay's chips, also boasts a similar 13% share.
Notably, Haldiram's snacks are also sold in overseas markets like Singapore and the United States. The company has around 150 restaurants selling local food, sweets and western cuisine.
(With inputs from Reuters)
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