Balaji Wafers in talks to sell 7% stake to General Atlantic for Rs 2,500 crore

Snack maker Balaji Wafers, which has drawn strong interest from investors and global food giants, is reportedly set to sell a 7% stake to US-based General Atlantic (GA) for around Rs 2,500 crore ($282 million).

According to a report by The Economic Times, founder and managing director Chandu Virani confirmed ongoing negotiations with GA, stating, “It’s a done deal from our side.”

The transaction is expected to value the Gujarat-based packaged foods company at about Rs 35,000 crore ($4 billion).

Virani said the decision to dilute stake is driven by the next generation of the Virani family, who are keen on bringing in strategic capital to scale the business.

Earlier this month, ITC, PepsiCo, Temasek, and TPG were among the firms exploring an investment in Balaji Wafers. The company had reportedly been considering divesting around 10% at an estimated valuation of nearly Rs 40,000 crore ($4.8 billion).

Balaji Wafers, best known for its chips, noodles, and confectionery products, has a strong foothold across central and western India. Founded in 1981 by the Virani family, the company today offers more than 65 products and operates through a distribution network of over 1,225 dealers.

In FY24, the company posted Rs 578.8 crore in profit, while revenue grew 11% year-on-year to Rs 5,453.7 crore.

Temasek’s interest in the company aligns with its strategy to expand in India’s fast-growing food sector. The Singapore fund previously acquired a 10% stake in Haldiram’s and invested $210 million in Rebel Foods, operator of cloud-kitchen brands like Faasos, Oven Story, and Behrouz Biryani.

PepsiCo’s renewed interest marks its second attempt to partner with Balaji Wafers after a proposed deal fell through in 2013 when the promoters resisted ceding majority control.