As Rajkot-based snack manufacturer Balaji Wafers inches closer to a stake sale deal with global equity firm General Atlantic, it is concurrently betting big on India’s packaged snack market by expanding its manufacturing capacity, product portfolio and geographies.
Speaking to FE, Balaji Wafers Founder and Managing Director, Chandu Virani, provided updates on the company’s deal and roadmap for growth, saying, “The deal is almost sealed as we are waiting for General Atlantic to review the final terms. We expect it to be completed within a month or so.” Interestingly, he categorically stated that the 7% stake worth Rs 2,500 crore will not be utilised for company expansion, but for personal payouts of the company’s shareholders, claiming that the company has ample reserves. “We aim to grow our company with General Atlantic and work in synergy,” he said. Currently, the possibility of selling more stakes is extremely low, according to Virani, who said, “Even if an investor aligns with the company’s vision and goals, we are presently not proposing to sell stakes higher than 2-3%.”
Virani on company’s expansion plans
Apart from the stake deal, Virani shared the company’s expansion plans, beginning with the establishment of two new factories in Karnataka and Gujarat with an estimated investment of Rs 1,000 crore, in addition to expanding the capacity of an existing plant in Uttar Pradesh. “Our new factories in Tumkur and Himmatnagar, in addition to the expansion of our UP plant and current Valsad and Indore plants, will substantially increase Balaji Wafers’ output. At full capacity, these plants will be producing approximately 2000 tonnes of snacks per day,” he stated.
According to a report by IMARC, India’s appetite for packaged snacks is projected to grow to Rs 1.01 lakh crore by 2033, with a CAGR of 8.63% between 2025 and 2033. Investment firm Rits Capital, in November, pegged Balaji Wafers’ market share in the packaged snacks market at 12%, the third-largest behind competitors Haldirams and Pepsico. Company data for FY24 shows revenue of about Rs 5,454 crore.
Balaji wafers eyes exports
While the potato chips category remains the highest revenue driver for Balaji Wafers, constituting approximately 20% of overall sales, the company is rapidly expanding into new categories, with Virani saying, “Currently, Balaji Wafers boasts 62 products. We are foraying into newer segments such as confectionery, cookies and spices to cater to more consumers.” He added that the company will focus on catering to mass consumers and is currently not planning to foray into niche segments such as healthy snacks. This comes on the back of the manufacturer discontinuing a healthy snack line a few months ago, which failed to generate demand among consumers.
Geographies outside India are also an area of focus, with Virani claiming a 20% year-on-year growth in its exports segment, which predominantly consists of frozen foods. The company already has a widespread presence in key markets, including the US, UK, Canada, Australia, South Africa, Uganda, and beyond. Capitalising on this growth, Virani shared, “We are also exploring newer markets for exports, given the healthy growth in demand. Some of these markets include Sri Lanka, Ethiopia, Cayman Islands, Saudi Arabia and Malaysia.”