Balaji Wafers Scales Back Plans for Minority Stake Sale Amid Steep Valuation Demands

Balaji Wafers' minority stake sale plans may be put on hold due to private equity funds and strategic investors citing a steep valuation of ₹40,000 crore. The snacks maker is open to considering a lower stake sale, but is not in a hurry to sell. The valuation is similar to rival Haldiram Snacks Foods, which sold a 15% stake at a valuation of ₹85,000 crore. The snacks market is competitive, with smaller regional brands giving stiff competition to legacy companies.

Balaji Wafers, a leading snack manufacturer in Gujarat, Maharashtra, and Rajasthan, is facing challenges in its minority stake sale plans. The company, which dominates the organized snack market in these regions with a significant market share, has attracted interest from several potential investors, including General Mills Inc. However, the high valuation of ₹40,000 crore has led private equity funds and strategic investors to pause their negotiations.

Balaji Wafers, founded in 1982, has an annual revenue of about INR 6,500 crore and a net profit of nearly INR 1,000 crore for the fiscal year 2025. The company's low-cost, high-efficiency model and focus on value pricing have enabled it to maintain a strong market position despite fierce competition from giants like Haldiram's and PepsiCo. Balaji Wafers' strategy of spending only about 4% of revenue on advertising helps channel resources into production, keeping prices competitive without compromising quality.

General Mills Inc., a U.S.-based food giant, had approached Balaji Wafers' promoters with a proposal to acquire a sizeable minority stake, potentially leading to a controlling interest. However, Balaji's founders are currently open to offloading only around 10% of the company's shares, according to a report by The Economic Times General Mills Eyes Stake in Balaji Wafers as Global Competition Intensifies for Indian Snack Leader^[1]. The company's founder, Chandu Virani, has stated that the aim is to attract strategic partners capable of improving operational efficiency and preparing Balaji for a future listing.

Balaji Wafers' valuation of ₹40,000 crore is similar to that of rival Haldiram Snacks Foods, which sold a 15% stake at a valuation of ₹85,000 crore. The snacks market is highly competitive, with smaller regional brands giving stiff competition to legacy companies. The company's focus on local markets and strong farmer partnerships has contributed to its success.

Balaji Wafers is not in a hurry to sell and is open to considering a lower stake sale. The company's strategy of keeping pricing fair and focusing on value has enabled it to maintain a strong market position and build a loyal customer base. The company's success story serves as a reminder that big businesses do not always start with billion-dollar ideas; sometimes, they begin with noticing a small customer habit and building relentlessly on it How Balaji Wafers became India's 3rd largest snack brand^[2].