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Prataap Snacks Ltd’s key shareholders led by Authum Investments and investor Madhusudan Kela are exploring an exit, just months after buying almost half the Indore-based chips and namkeen maker from erstwhile shareholders Peak XV Partners (formerly Sequoia Capital), said people in the know.Feelers have gone out to competitors including Haldiram, Advent-backed DFM Foods and ITC as well as private equity funds to gauge their interest in buying out a controlling stake or exploring a merger, as Pratap continues to face growth stagnation due to demand stress in the impulse pack segment and volatile raw material prices. Rivals such as Bikanervala, ITC, Parle, Balaji Wafers and Crax besides dozens of D2C players such as Baked BRB and regional ones like Sweet Karam and Chitale Bandhu are competing for the Rs 47,000 crore Indian snacks market. The development also comes at a time when players such as Haldiram are preparing a blueprint for significant growth and expansion after raising $1 billion from private equity investors at a $10 billion valuation earlier this year. 123663990Publicly listed shadow lender Authum Investment and Infrastructure Limited (AIIL) led by Alpana and Sanjay Dangi is the single largest stakeholder and part of the promoter group, with a 42.93% voting share capital at the end of June. Brothers Amit and Apoorva Kumat, who belong to the founding family, along with their friend Arvind Mehta own 11.99%. Kela owns 7.41% via individuals and entities including wife Mahi Madhusudan Kela and Cohesion MK Best Ideas Sub Trust. The latter is a joint venture between Kela and Cohesion Investments. Other financial investors in the widely held local snack maker include Fearing Capital (2.01%) and Malabar India Fund (1.45%).Authum had initially announced its intention to acquire Prataap Snacks in September 2024, buying shares through an open offer as well as preferential allotment at Rs 865.66 and Rs 746 apiece, respectively. Following the acquisition, Prataap became an associate company of Authum. An exchange filing on February 27 showed Kela and AIIL owned 46.87%.The people cited said Authum and some of the other investors may collectively cash out. That will trigger an open offer for an additional 26% stake in the company. An exit by Authum and Kela alone would mean 55% of the company being up for grabs. However, these are early stage discussions and there are no guarantees it will lead to a transaction. Sources close to the investors said the company is trading at 3.3 times its book value and any efforts to sell now will not yield the best price when consumer deals at being struck at richer multiples.“Both Authum and Kela have just bought into the company and will give at least 4-6 quarters to turn it around,” said one of them. “The franchise, brand, its distribution network, land bank, have significant value. But end of the day, they are financial investors who are not even on the board of the company. So, at a good price they are sellers.”The stock ended at Rs 959.85, up 4%, on the NSE Tuesday for a market value of Rs 2,288.63 crore, having dropped 15.4% year to date.The Kumats didn’t respond to queries. Haldiram and DFM Foods didn’t comment. Dangi and Kela remained unavailable for comment.Cheeseballs to ChipsThe Kumat brothers, one of them an engineer, started in FY04 with an initial investment of Rs 15 lakh, selling cheeseballs from a cramped office in Indore’s Navlakha area. Prataap Snacks was incorporated in 2010 after merging with Prakash Snacks. In 2023, it merged with Avadh Snacks, six years after an IPO that was oversubscribed 47 times. It is currently a national player that sells a portfolio of savoury snacks and namkeens and has recently diversified into sweets and cakes.The company currently generates 85% of its revenue from the Rs5 packs against 55-60% for the industry. The volatility in raw material prices saw profitability take a hit in the past, as it focused on absorbing pressure in an inflationary environment and being competitive in a deflationary one. The management is now planning to push packs of Rs10 and above, and widen its footprint to bigger towns and cities.“Prataap’s ebitda margin is largely influenced by its gross-margin profile. Given high concentration of low unit packs, its ability to hike prices in a volatile raw material environment is weak,” said Nitin Gupta, analyst with Emkay Global. “For the company, steady inflation with growth is key for margin enhancement.”In parallel, the management has also undertaken a key exercise to identify key markets -- Delhi, Haryana, Madhya Pradesh, Maharashtra, and Assam as command markets, which are focused on range-selling. Uttar Pradesh, Bihar, Gujarat, and South India represent expand markets, where the company has low market shares with large potential. In the price sensitive eastern markets, Prataap’s management is optimistic about stronger demand for its pellet offerings under the flagship Yellow Diamond brand, including various flavors of extruded snacks such as Puffs, Rings, Wheels, Chulbule etc. In key growth markets it is looking to further leverage on Avadh’s sales distribution and infrastructure. “While Yellow Diamond’s strength used to be regional markets, the past two years have seen intense competition even within local markets, and resurgence of regional brands such as Balaji Wafers, Chitale Bandhu, Gopal namkeens and Sweet Karam which operated in limited markets capitalising on reach and discoverability by quick commerce platforms,” said an industry executive.

The finance ministry will start work on the Union Budget for 2026-27 from October 9, according to a circular issued by the Department of Economic Affairs.The exercise comes against the backdrop of an additional 50% US tariff on most Indian goods and other external headwinds. These have raised risks to India's growth and jobs outlook, prompting calls for stronger support to the export sector.The uncertainties triggered by the tariff and global factors are expected to shape budget preparations this year. Through the Budget, the government will look not just to steer through these challenges but also to build on its pledge of next-generation reforms to sustain high growth momentum and employment creation."Realistic projection for Revised Estimates (for) 2025-26 and Budget Estimates (for) 2026-27 is a pre-requisite," the circular said. "Proper expenditure estimation by ministries/departments would obviate the need for routine/frequent mid-year re-appropriations. Minimal mid-year additional resource requirements/mid-year re-appropriations reflect good budgeting," it added.With 2026-27 marking the first year of the 16th Finance Commission cycle, ministries and departments have to ensure allocations sought in the budget estimates are in line with the approval of the competent authority, it said. Any transfer of liabilities from the current FC cycle to the next will not be allowed unless specifically approved.

Invesco Mutual Fund has received market regulator Sebi approval to transfer a controlling 60 per cent stake to IndusInd International Holdings Ltd (IIHL), according to sources.The Securities and Exchange Board of India (Sebi) has recently provided all approvals to the pending applications by Invesco India for a change in control of Invesco AMC, Invesco Trustee Company and to the PMS business, they added.According to sources, Sebi has also approved the appointment of directors on the board of the Invesco Trustee Company.The Competition Commission of India (CCI) had approved the acquisition of shareholding in each of Invesco Asset Management (India) Private Ltd and Invesco Trustee Private Ltd by Hinduja Group's firm IIHL in August 2024.The proposed combination pertains to the acquisition of 60 per cent shareholding in each of Invesco Asset Management (India) Private Ltd (Invesco AMC) and Invesco Trustee Private Ltd (Invesco Trustee) by IIHL.IIHL will be holding the investment through its wholly-owned and controlled subsidiary, IIHL AMC Holdings Limited (IIHL AMC), which has been incorporated specifically for the purposes of the proposed combination.IIHL is a global business (Category 1) licensee company incorporated in Mauritius. The principal activity of IIHL is investment holding, whereby it holds shares in different companies spread across sectors.Invesco Trustee and Invesco AMC are the trustee company and asset management firm, respectively, of Invesco Mutual Fund and are duly approved by Sebi under the provisions of the SEBI (Mutual Funds) Regulations, 1996.Invesco AMC is also registered as a portfolio manager under the SEBI (Portfolio Managers) Regulations, 2020.Earlier this year, IIHL acquired debt-ridden Reliance Capital Ltd and its subsidiaries that operate in the life insurance, health and general insurance sectors and asset reconstruction, research and securities broking.The acquisition took place in May 2025, following the NCLT approval of IIHL's resolution plan.IIHL's ownership will benefit Invesco to expand into more Indian cities and towns due to the presence of a strong domestic partner.Invesco Asset Management began its India operations in 2008 with the acquisition of Lotus India Asset Management Company.Since then, it has grown to serve over 1.6 million retail investor folios and over 39,000 empanelled distributors as of April, with over 70 per cent of its assets under management in equity and equity-oriented assets.It is the fifth-largest foreign asset manager and the 17th largest domestic asset manager in India, with combined onshore and offshore advisory and assets under management of Rs 85,393 crore as of March 31, 2024, and a presence in 40 cities across the country.

U.S. manufacturing contracted for a sixth straight month in August as factories continued to grapple with the impact of import tariffs, but an artificial intelligence spending boom is lending support to some segments of the industry. The Institute for Supply Management (ISM) said on Tuesday its manufacturing PMI edged up to 48.7 last month from 48.0 in July. A PMI reading below 50 indicates contraction in manufacturing, which accounts for 10.2% of the economy. Economists polled by Reuters had forecast the PMI would rise to 49.0. Despite the persistent weakness in the PMI, businesses have been boosting spending on AI products, which is helping to offset some of the drag from import duties. Spending on intellectual property products grew at its fastest pace in four years in the second quarter, while investment in equipment was strong. Economists expect the AI spending spree to continue, with factories also likely to get a boost from accelerated depreciation allowances on investments in President Donald Trump's tax and spending bill. The ISM survey's forward-looking new orders sub-index increased to 51.4 after contracting for six consecutive months. But the survey's production gauge fell to 47.8 from 51.4 in the prior month. With production declining, factory employment remained subdued. The ISM has noted an "acceleration of headcount reductions due to uncertain near- to mid-term demand." Suppliers took a bit longer to deliver materials to factories last month. The ISM survey's supplier deliveries index increased to 51.3 from 49.3 in July. A reading above 50 indicates slower deliveries. Lengthening delivery times meant prices paid by factories for inputs remained elevated. The survey's prices paid measure slipped to a still-high 63.7 from 64.8 in July. The high reading supports economists' contention that goods prices will accelerate in the second half of 2025. Tariffs have been slow to pass through to higher inflation, with economists arguing that businesses are still selling merchandise accumulated before the import duties kicked in. Businesses also have been absorbing some of the tariff-related costs. But inventories were drawn down in the second quarter and companies have warned tariffs are raising their costs, which economists expect will eventually be passed on to consumers.