Balaji Wafers' stake sale plan on hold amid weak response from PE investors

Gujarat-based snacks firm Balaji Wafers has put its minority stake sale deal on hold due to weak response from private equity (PE) investors, according to a report by The Economic Times. PE firms like TPG and Temasek halted negotiations over the steep ₹40,000-crore valuation.

 

According to the report, Chandu Virani, founder and managing director, said the company will not sell below the ₹40,000-45,000 crore valuation for a 10 per cent stake but he remains open to selling a smaller stake. However, he emphasised that there’s no hurry to sell.

 

ITC and PepsiCo also explored the deal but later withdrew as they were not keen on a minority stake.

 

 

As reported earlier by Business Standard, Balaji Wafers was in talks with PE firms for a 10 per cent stake sale to fund expansion across India.

Strong presence in western, central India

Balaji Wafers, headquartered in Rajkot, makes chips, namkeens, and confectionery under the Balaji brand, with a strong presence in western and central India. It also exports to the UK, US, and West Asia.

 

The firm reported net sales of ₹5,453.7 crore in 2023-24, up 10.7 per cent, while profit after tax rose 41.4 per cent to ₹578.8 crore, according to Capitaline.

 

According to Tracxn data, its eight-member board includes the Virani brothers (Chandubhai, Bhikhubhai, and Kanubhai), Keyur Virani (son of Bhikhubhai), and director Sameer Chadha, along with independent directors Mihir Virani (son of Bhikhubhai), Mansukhlal Bhanderi, and Pranay Virani (son of Chandubhai).

 

India’s packaged food market was valued at $121.3 billion in 2024 and is projected to reach $224.8 billion by 2033, expanding at a compound annual growth rate of 6.5 per cent, according to market research firm IMARC.