ITC Foods, PE firms among a dozen cos in race for around 10% stake acquisition in Balaji Wafers

New Delhi: Over a dozen firms, including leading private equity firms, are in the fray to acquire a 10-15 per cent stake in Balaji Wafers, where the promoters are diluting their stake, according to industry sources.

PE firms, including Temasek, which recently acquired a 10 per cent stake in Haldiram, along with TPG, ADIA (Abu Dhabi Investment Authority) and some 10 other VC/ PE names, are in discussion with the promoters to acquire a minority stake in Balaji Wafers.

Besides FMCG companies, ITC Foods is also in the race to acquire a stake in Gujarat-based Balaji Wafers, which has a strong presence in the chips, namkeen and confectionery products in central and western India.

The promoters, Virani brothers, want to dilute 10 to 15 per cent stake at 10 times EBITDA, the sources said.

The company's valuation is around USD 3.5-4 billion, but the promoters are expecting around USD 5 billion in valuation, they said.

The promoters are in talks with multiple domestic and international funds, they added.

Interestingly, big PE firms like Blackstone and KKR are not participating in Balaji Wafer's equity, the industry sources told PTI.

ITC Foods, part of multi-conglomerate ITC, could be the likely suitor, they added.

Balaji Wafers was founded by Virani brothers - Chandubhai, Kanubhai, and Bhikhubhai - who started by selling prepackaged snacks at a cinema canteen in the 1970s.

They later started making their own potato wafers and namkeen snacks at home, eventually growing their business into a major Indian snack company.

The brand name Balaji was inspired by a Hanuman Temple near their residence.

The company, which has 65-plus product SKUs and nearly 1,300 dealers, had crossed Rs 5,000 crore in revenue in 2023.

According to reports, in FY24, Balaji Wafers' revenue was Rs 5,453.7 crore, and it had reported a profit of Rs 578.8 crore.

Founded in 1981 by the Virani brothers, the brand has since grown to a 65-plus product portfolio distributed through more than 1,225 dealers.

In March this year, India's largest packaged snack and sweets company and restaurant operator Haldiram announced the partnership with three strategic investors - Singapore-headquartered global investment firm Temasek, Alpha Wave Global and International Holding Company (IHC).

Though the details of the deal were not disclosed, industry insiders said it was done at a valuation of USD 10 billion (around Rs 85,000 crore), which is considered to be the largest for the Indian packaged food industry.

According to the IMARC Group report, the Indian snacks market size reached Rs 46,571.3 crore in 2024. It expects the market to reach Rs 1,01,811.2 crore by 2033, exhibiting a growth rate (CAGR) of 8.63 per cent during 2025-2033.

The major drivers of India's snacks market include rapid urbanisation, a gradual shift in consumer lifestyle towards various convenience foods and rising disposable income, which allows people to spend more on processed foods.