Temasek eyes stake in Balaji Wafers, says report

The deal would likely value the Gujarat-based snacks-maker at Rs 38,000-40,000 crore, the report said

Singaporean state-owned multinational investment firm Temasek is considering to acquire some stake in Balaji Wafers, Mint reported citing people familiar with the matter. This comes after the firm bought some stake in Haldiram's and Rebel Foods.

The deal would likely value the Gujarat-based snacks-maker at Rs 38,000-40,000 crore, the report said, adding that private equity players may also show interest. It however added that the talks are at the initial stages.

Currently, the promoters of the company intend to sell around 10 percent stake and unlock some value, Mint cited a source as saying, who added that Balaji may raise Rs 4,000 crore from the stake sale.

Moneycontrol couldn't independently verify the report.

Earlier in March this year, Temasek bought 10 percent stake in Haldiram's at a valuation of around $1 billion, Reuters reported. "This transaction positions Haldiram’s to continue its ambitious expansion plans both in India and internationally, solidifying its presence in an increasingly competitive market," the Indian snack-maker had said in a statement.

Earlier last year, Temasek led a $210-million funding round for Rebel Foods, the cloud kitchen startup that runs brands such as Faasos, Oven Story, Behrouz Biryani and others.

Balaji Wafers was established by the Virani brothers — Chandubhai, Bhikhubhai, and Kanubhai. 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.