Balaji Wafers, the Gujarat-based snack major founded by the Virani brothers, is in talks with leading private equity (PE) firms to sell up to 10% stake at a valuation of nearly INR 40,000 crore (~USD 4.8 billion). If the deal goes through, it would be one of the biggest deals in India’s FMCG space, putting Balaji in the same league as Haldiram’s.
From Humble Beginnings to Industry Leader
The Balaji Wafers story is one of India’s most incredible entrepreneurial journeys. Founded by Chandubhai Virani, a 10th-pass canteen worker who started with just INR 10,000 in the 1970s, Balaji has become a household name in western and central India. The company’s product line includes potato chips, namkeens and confectionery, with exports to UK, US and West Asia.
Today, the brand has a huge following in Tier-2 and Tier-3 markets and often outsells multinational rivals like PepsiCo’s Lay’s and ITC’s Bingo.
The Deal on the Table
According to reports, Balaji Wafers is looking to raise around INR 4,000 crore by offering up to 10% stake to private equity and institutional investors. The structure is expected to be a mix of primary infusion—funds directly into the company for expansion—and secondary sales by existing stakeholders.
- Benchmark Valuations: The USD 10 billion valuation for Haldiram’s after its USD 1 billion stake sale to global investors has set the benchmark for the snack industry in India.
- Expansion Needs: Balaji plans to use the funds to expand manufacturing capacity, strengthen distribution network and invest in innovation and marketing.
- Professionalization Drive: Some reports suggest that the Virani family is looking to bring in professional leadership as the company prepares for the next growth phase. Balaji Wafers IPO likely in the next 5-6 years.
Financials
Balaji has been growing strongly:
- FY24 Revenues: INR 5,453.7 crore (up 10.7% YoY)
- Profit After Tax: INR 578.8 crore (up 41.4% YoY) This is justified given the performance. For comparison, listed peers Prataap Snacks and Bikaji Foods have market caps of INR 2,379 crore and INR 20,053 crore respectively, making Balaji much bigger and more profitable than its peers.
The Bigger Picture: India’s Snack Boom
India’s packaged food industry is USD 121.3 billion in 2024 and is expected to reach USD 224.8 billion by 2033, growing at 6.5% CAGR (IMARC). Within this, savory snacks are growing at double digits, driven by:
- Rising disposable incomes
- Urbanization and lifestyle changes
- Growing penetration in smaller towns and rural areas
- Increasing demand for affordable, quality snacks
PE firms have record “dry powder” globally and are looking at consumer-facing businesses in India as one of the most attractive opportunities, along with technology and healthcare.
A Missed Buyout, Now a Landmark Deal
Interestingly, Balaji Wafers once got a buyout offer of INR 4,000 crore for the entire company—which it declined. Today, the same amount is being offered for 10% equity, shows how the company has grown and how the appetite for Indian FMCG stories has increased.
This is how Balaji has transformed from a regional player to a national player with global ambitions.
FMCG Sector Implications
If the deal happens, the impact will be huge:
- Investor Confidence: Will make Indian FMCG a high growth, defensible sector.
- Competition: Balaji’s expansion will increase competition with established players like Haldiram’s, Lay’s and ITC.
- Innovation: Fresh capital will drive product innovation, from healthy options to premium lines, change consumer choices.
- Economic Impact: Expanded manufacturing and distribution will create thousands of jobs, boost FMCG supply chain in India.
Conclusion
From a canteen in Rajkot to boardroom discussions with global private equity majors, Balaji Wafers is the embodiment of Indian entrepreneurship. INR 40,000 crore valuation for a company which was bootstrapped with INR 10,000 shows not just Balaji’s growth but India’s changing consumer story.
As the Virani brothers decide their next move, the upcoming stake sale will be the beginning of Balaji’s transition from a family run company to a professionally managed FMCG giant—ready to rule Indian and global snack shelves.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.