Balaji Wafers' stake sale on hold amid lukewarm investor interest

Snack food manufacturer Balaji Wafers appears to have put its minority stake sale on the back burner following muted interest from private equity funds and strategic investors, according to a report by The Economic Times. The primary concern cited is the company's steep valuation, which has reportedly deterred potential backers.

This tepid response stands in contrast to rival Haldiram Snack Foods, which successfully sold nearly a 15% stake to three global private equity investors — Singapore’s Temasek, Alpha Wave Global, and International Holding Company (IHC) — at a $10 billion valuation in March 2025.

Earlier this month, ITC, PepsiCo, Temasek, and TPG were among the players exploring a stake in Balaji Wafers, which is reportedly seeking to divest around 10% of the company at an estimated valuation of nearly ₹40,000 crore (approx. $4.8 billion).

While ITC and PepsiCo had also evaluated the opportunity, they later walked away, reportedly due to a lack of interest in acquiring only a minority stake.

Balaji Wafers — best known for its chips, noodles, and confectionery products — has a dominant presence in central and western India. Founded in 1981 by the Virani family, the brand has grown significantly, offering over 65 products through a wide distribution network of more than 1,225 dealers.

In FY24, the company reported a profit of ₹578.8 crore, with revenues rising 11% year-on-year to reach ₹5,453.7 crore.

Temasek’s interest in Balaji was seen as part of a broader strategy to increase exposure to India’s fast-growing food sector. The Singapore-based fund had earlier acquired a 10% stake in Haldiram’s and invested $210 million in Rebel Foods, the cloud kitchen operator behind brands like Faasos, Oven Story, and Behrouz Biryani. Reuters had previously reported Temasek's growing interest in Indian family-owned enterprises.

PepsiCo’s renewed interest in Balaji Wafers comes over a decade after its earlier attempt in 2013, during the tenure of former CEO Indra Nooyi. That deal fell through after Balaji’s promoters resisted PepsiCo’s push for a majority stake.

Despite the current pause, Balaji Wafers remains a significant player in the Indian snack market, and investor interest could revive should valuation expectations align more closely with market sentiment.

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