Balaji Wafers, the Rajkot-headquartered snack maker, is in discussions with top private equity (PE) firms to divest up to 10 per cent of its equity at a valuation of nearly Rs 40,000 crore ($4.53 billion), according to Business Standard, which cited people aware of the development.
The company, established by the Virani brothers — Chandubhai, Bhikhubhai, and Kanubhai — is exploring this partial stake sale to support its nationwide expansion plans. A source told Business Standard that the recent $10 billion valuation of rival Haldiram’s has set a new benchmark for the Indian snacks sector, encouraging Balaji’s promoters to consider a deal.
In March 2024, Haldiram secured $1 billion from International Holding Company, Alpha Wave Global, and Temasek in exchange for a 10 per cent stake.
The source also indicated that Balaji, still run by the founding family, is weighing the option of inducting professionals to lead its next growth phase. A stock-market debut is on the cards, though only in the next five to six years. The company did not respond to Business Standard’s email query on the matter.
Private equity funds, which are sitting on record amounts of deployable capital, continue to show keen interest in Indian consumer-facing sectors, alongside technology and healthcare. A US-based fund manager told Business Standard that they are actively pursuing consumer deals, citing the availability of significant “dry powder” — a term used in the industry for ready capital.
Within the listed snacks space, Prataap Snacks and Bikaji Foods International provide a sense of market benchmarks. As of last Friday’s close, Prataap Snacks was valued at Rs 2,379 crore, while Bikaji Foods had a market capitalisation of Rs 20,053 crore.
Balaji Wafers, which produces potato chips, namkeens, and confectionery, dominates markets in western and central India, while also exporting to the UK, US, and West Asia. For FY24, the company reported revenues of Rs 5,453.7 crore, up 10.7 per cent year-on-year, with profit after tax rising 41.4 per cent to Rs 578.8 crore, data from Capitaline showed.
The company’s eight-member board includes the founding Virani brothers, Keyur Virani (son of Bhikhubhai), and director Sameer Chadha, along with independent members Mihir Virani (son of Bhikhubhai), Mansukhlal Bhanderi, and Pranay Virani (son of Chandubhai), according to Tracxn.
Citing IMARC research, Business Standard reported that India’s packaged food industry stood at $121.3 billion in 2024 and is projected to touch $224.8 billion by 2033, expanding at a compound annual growth rate (CAGR) of 6.5 per cent.
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