American Kellogg plans to invest in Haldiram's

Kellogg, an American breakfast cereal giant, is eyeing a stake in Haldiram’s, India’s leading snack maker, as it seeks to diversify its local portfolio nearly 25 years after foraying into the market. Kellogg is the world’s second-largest snack foods company.

After the Agarwal family split the business geographically among themselves in the 1990s, Haldiram’s operates out of three hubs of Delhi, Nagpur and Kolkata.

The ongoing talks involve two of the three branches of Haldiram’s, including Delhi-based Haldiram Ethnic Foods and its affiliates, and Nagpur-based Haldiram’s Food International and affiliates, catering to the western and southern markets.

A spokesperson for Kellogg India said, "As per our policy, we don’t comment on rumors or speculation regarding potential acquisitions, JVs or divestitures."

While Michigan-based Kellogg is believed to be pressing for a 51% stake in the two divisions, the Agarwal family is not keen to cede control and prefers a 25% dilution.