MUMBAI, Aug. 20 -- Temasek-backed Haldiram Snacks Food Pvt. Ltd is scouting for acquisitions to expand its pan-India presence, particularly in the South, according to two people familiar with the matter. "Temasek and the company's top management have sounded out bankers to identify assets that are profitable with strong fundamentals for a bolt-on strategy," one of the people cited above said. Such deals allow larger firms to buy smaller businesses to expand operations, diversify offerings, or reach new markets. Haldiram has the capability to acquire assets in the range of $50-200 million, the second person said, adding the company is and "well-capitalized" and the business is cash flow positive. Haldiram's CEO Krishan Kumar Chutani did not respond to emailed queries, while Temasek declined to comment. The move comes as the Indian packaged foods industry faces intensifying rivalry. Haldiram faces direct competition from Bikanervala, Bikaji, Balaji Wafers, Gits Food Products, and Prabhuji, while smaller brands such as Lal Sweets and Sweet Karam Coffee have also raised funds in the past year to capture opportunities in the sector. Some of the leading food brands in the South that have changed hands in recent years include Nirapara and Brahmins acquired by Wipro Consumer Care, and Eastern Condiments acquired by Orkla ASA. A report from rating agency Icra Ltd from earlier this year highlighted that the company also faces heightened competition from local manufacturers of sweets and namkeens, other restaurant operators, and established QSR chains such as McDonald's, Domino's, and KFC. Haldiram has historically turned to acquisitions to expand its presence beyond its northern stronghold. In FY16, the company acquired Indore-based Aakash Namkeen, followed by controlling stakes in regional players including Babaji Snacks, Pragati Snacks, Ankita Agro and Food Processing, and Atop Food Products in FY20. A Crisil Ratings report from April said Haldiram's financial risk profile is supported by healthy cash accrual of Rs.1,079 crore and negligible borrowings of Rs.80 crore. The report added that strong cash accrual of about Rs.1,000 crore annually is expected to be sufficient to fund planned capital expenditure and incremental working capital requirements. Its reserves were further boosted in March when Singapore-based Temasek agreed to acquire a 10% stake in Haldiram Snacks for Rs.8,500 crore, valuing the company at $10 billion, or Rs.85,000 crore. Alpha Wave Global and International Holding Co. also participated in the fundraise, which capped more than a year of negotiations and ranked among the largest private equity deals in India's food sector by valuation. The deal followed a long-awaited merger of Haldiram's Nagpur and Delhi factions. The groups demerged the fast-moving consumer goods (FMCG) businesses of Haldiram Snacks Pvt. Ltd (HSPL) and Haldiram Foods International Pvt. Ltd (HFIPL)-part of the Nagpur group-into a newly incorporated entity, Haldiram Snacks Foods Pvt. Ltd. The Delhi operations were run primarily by Manohar Agarwal and Madhu Sudan Agarwal, while the Nagpur business was led by Kamalkumar Shivkisan Agrawal, grandson of founder Ganga Bhishen Agarwal, who started Haldiram in 1937. Existing shareholders of HSPL and HFIPL now hold 56% and 44%, respectively, in the new entity. From a small sweet shop, Haldiram has grown into a global snacks company with more than 400 varieties of namkeen, confectionery, and ready-to-eat foods sold in 100 countries. Its portfolio includes snacks, sweets, frozen foods, biscuits, pasta, and non-carbonated beverages. Exports extend to markets including the US and Europe. The company operates manufacturing facilities in Noida, Uttar Pradesh, and Uttarakhand, and runs restaurants across the National Capital Region, Uttar Pradesh, Punjab, and Haryana under different group companies. Packaged foods account for 85% of revenue, while restaurants contribute 15%. In FY24, Haldiram reported standalone revenue of Rs.6,976 crore, up from Rs.6,377 crore in FY23. Net profit rose to Rs.875 crore from Rs.593 crore. Profit growth was supported by the normalization of raw material costs such as palm oil, milk, and packaging. Salted snacks remain the company's largest segment, contributing more than 75% of revenue....