Balaji Wafers Plans to Sell 10% Stake to Boost Expansion Across India
Balaji Wafers, a popular Indian snack company, is planning to sell up to 10% of its shares to private equity investors at a valuation of around ₹40,000 crore, with the aim of using the funds to grow its business across India and compete with bigger brands in the snacks market.
MARKET NEWS
9/8/20252 min read
One of the top snack producers in India, Balaji Wafers, is reportedly in advanced talks to sell up to 10% of the business to well-known private equity (PE) groups, with the goal of achieving a valuation of about ₹40,000 crore, or $4.5 billion. Recent historic prices in the FMCG snack industry, like Haldiram's $10 billion valuation, are thought to have inspired this possible purchase, which underscores the company's goals to speed its expansion throughout India.
Deal Details
The Virani brothers—Chandubhai, Bhikhubhai, and Kanubhai—who are Balaji Wafers' promoters, are leading talks to sell a minority stake in order to acquire money for expansion plans across the country. According to industry sources, the company is probably going to hire experts for its next stage of expansion and might possibly think about going public in the next five to six years.
Rationale Behind Stake Sale
It is anticipated that Balaji Wafers will raise enough money from the proposed stake sale to increase its manufacturing base, with a particular focus on the southern and northern Indian markets. With a significant market position in Gujarat and other western states, the company has experienced remarkable development, topping ₹5,000 crore in annual sales in FY23. Despite operational difficulties, the family-run company has prospered and is still dedicated to quality and innovation.
Industry Trends
New valuation standards have been established by recent transactions in the Indian snack industry, most notably the sale of Haldiram's stock, which has prompted Balaji Wafers to reevaluate its own market value and growth plan. Major snacking companies from both domestic and international markets have repeatedly expressed interest in Balaji, highlighting his rising stature.
Future Prospects
It is anticipated that Balaji Wafers will use the money raised from the sale of its stakes to finance capital-intensive expansion initiatives, implement cutting-edge technology, and perhaps hire outside experts to direct its next phase of growth. Although it is a possibility, the IPO path is unlikely to become a reality for several years.
The sale of a strategic share by Balaji Wafers signifies the company's goal to expand its reach well beyond its core regions and is a significant milestone in the quickly expanding Indian FMCG snack sector.