MUMBAI, May 14 (Reuters) - A consortium including

Blackstone, Singapore state fund GIC and Abu Dhabi

Investment Authority (ADIA) is in talks with India's Haldiram's

for a majority stake in its snacks business at a valuation of up

to $8.5 billion, two sources with direct knowledge said.

Haldiram's, a household name in India, has more than 150

restaurants selling local food, sweets and western cuisine. It

also has a popular snacks business for which the deal talks are

currently ongoing, said the sources, who declined to be named as

the discussions are private.

The consortium, led by Blackstone, has submitted a

non-binding bid for a 75% stake and the talks are in early

stages, the sources said, adding that the final percentage and

valuation has not yet been decided.

GIC and ADIA - both investors in Blackstone's funds - are

part of the non-binding bid, the sources added. India's Economic

Times newspaper first reported the deal talks.

Haldiram's CEO Krishan Chutani, ADIA and Blackstone declined

to comment while GIC did not immediately respond.

Last year, Reuters reported India's Tata Group was in talks

with Haldiram's to acquire a majority stake in the entire snacks

and restaurants business. Haldiram's at the time was seeking a

valuation of $10 billion.

Those talks have ended and no Tata deal is in the works, a

third source with direct knowledge said on Tuesday.

(Reporting by M. Sriram; Editing by Lincoln Feast.)