The promoters of Balaji Wafers, a leading snack manufacturer headquartered in Rajkot, are in early discussions to sell about 10% equity stake in the company.
- Strategic investors ITC and PepsiCo, along with private equity firms such as TPG and Temasek, are reported to be among the interested buyers.
- The valuation for Balaji Wafers is estimated at around ₹40,000 crore in these discussions.
Financials & Background
- In FY24, Balaji Wafers’ revenue rose ~11% to ₹5,453.7 crore. Profit after tax grew about 41% to ₹578.8 crore.
- The snack market in India is growing fast; smaller regional brands are drawing more attention for their local dominance and potential for scale
- Promoters are reportedly considering bringing in professional management and streamlining operations.
Why It Matters
- Strategic Gains for ITC & PepsiCo
- For ITC, this could bolster its Bingo & savoury snacks portfolio.
- For PepsiCo, tying up with a strong regional brand gives better access to central & western India, plus local consumer preferences.
- Validation of Regional Brands
- The high valuation shows how “regional giants” in snacks are commanding premium interest from big players and investors.
- Capital for Growth
- With fresh capital, Balaji Wafers can invest in new factories, expand distribution, and professionalize operations.
- Promoter Control Maintained
- Promoters are said to prefer selling a minority stake, not giving up control.
What’s Uncertain / What to Watch
- These are preliminary talks — nothing firm has been agreed so far.
- The actual stake % and deal terms (price, synergies, rights) are likely to be negotiated. Promoters are not keen on large dilution. mint
- Valuation could shift depending on investor demand, due diligence, and competition among bidders.
- Regulatory approvals, if necessary, and structure of deal (equity vs other instruments) may impact timing.
Conclusion
Balaji Wafers’ plan to sell about 10% stake at a valuation around ₹40,000 crore, with interest from ITC, PepsiCo and PE firms like Temasek and TPG, reflects growing appetite for strong local brands in India’s snack market. While control is likely to remain with the Virani promoter family and deal terms are still being worked out, this could be a landmark move in India’s fast-moving consumer goods (FMCG) space.
