The Singapore state investor is holding preliminary talks to buy from 10% to 15% in Haldiram, the people said, asking not to be identified because the matter is private.

“The investment may serve as a stepping stone towards a potential initial public offering of the company,” the people said.

They said talks are ongoing and may not lead to a transaction.

“The company, also known as Haldiram’s, has drawn interest from other prospective bidders,” the people added.

A representative for Temasek declined to comment, while Haldiram didn’t have an immediate comment.

Founded by Ganga Bishan Agarwal in the 1930s in north India, Haldiram’s sells a range of foods from sweet and savory snacks to frozen meals and breads.

It also runs 43 restaurants in and around Delhi, according to its website.

The Agarwal family has been exploring options including a sale of the business and a potential IPO, Bloomberg News has reported.

Global investors have been increasing their focus on India, lured by its rapid economic growth. That’s turned the country into a hotspot for deal-making.

Temasek has deployed nearly US$37 billion in India over the past two decades, according to Vishesh Shrivastav, its managing director for India investments.

That figure is set to rise sharply, with the company saying last year it planned to commit billions more.

Temasek has been targeting minority stakes and helping Indian companies to grow, largely eschewing the trend of taking majority holdings in firms based in the world’s most populous country.

“Core areas include digitisation, consumption, and sustainable living,” said Shrivastav.

Bloomberg News has reported that those potential minority investments include VFS Global, in a transaction valuing the visa outsourcing and technology services firm at about US$7 billion including debt.