General Mills joins ITC and PE giants in race for 10% Balaji Wafers stake

Balaji Wafers, the Gujarat-based snack maker that dominates western India’s potato chips and namkeen market, has reportedly attracted global attention as it explores selling a minority stake. US food giant General Mills Inc, known for brands like Pillsbury and Betty Crocker, has joined a growing list of potential investors that includes ITC Ltd, PepsiCo, and several leading private equity funds, according to a report by The Economic Times.
 
General Mills has reportedly approached Balaji’s promoters with interest in securing a significant stake. However, the Virani family, which founded the business more than four decades ago, is only considering the sale of about 10 per cent for now, the report said. The promoters have clarified that any funds raised would be channelled into a family trust and not the company’s day-to-day operations.

The company is also reportedly preparing for a potential initial public offering (IPO). The aim is to bring in strategic investors who can offer operational expertise and help the company scale up nationally.

A fast-growing business
 
Balaji’s journey began in 1982 as a small supplier at a cinema hall in Rajkot. Today, it generates more than ₹6,500 crore in annual revenue and nearly ₹1,000 crore in net profit. The company controls about 65 per cent of the organised snack market in Gujarat, Maharashtra, and Rajasthan, making it the third-largest salty snack player in India after Haldiram’s and PepsiCo, the news report said

At least 10 private equity investors are in discussions to acquire a stake, valuing the company at nearly ₹40,000 crore ($4.53 billion). Interested names include Abu Dhabi Investment Authority (ADIA), KKR, Bain, Carlyle, TPG, ChrysCapital, Multiples, TA Associates, L Catterton, Goldman Sachs, and Morgan Stanley.
 
Haldiram’s recent $10 billion valuation deal has set a benchmark in the sector, spurring Balaji’s promoters to consider a stake sale. Executives also expect the recent goods and services tax recalibration to boost snack sales across categories.

Balaji Wafers, with a stronghold in western and central India, also exports its products to the US, UK, and West Asia. In 2023-24, the company reported net sales of ₹5,453.7 crore, up 10.7 per cent year-on-year, while profits jumped 41.4 per cent to ₹578.8 crore, according to Capitaline data.

India’s packaged food market, valued at $121.3 billion in 2024, is projected to reach nearly $225 billion by 2033, growing at a CAGR of 6.5 per cent. For General Mills, with only a limited presence in India so far, Balaji Wafers could be the perfect entry point into the fast-growing savoury snack space, worth an estimated ₹45,000 crore.