Why FMCG Giants Are Eyeing a Bite of Balaji Wafers

Balaji Wafers has grown from a small canteen experiment in Rajkot to a multibillion-rupee snacks empire, now attracting private equity firms and FMCG giants eager for a stake in its story.

From Cinema Counter to Snack Empire

The journey of Balaji Wafers began in 1974 when Chandubhai Virani noticed that wafers sold faster than sandwiches at a Rajkot cinema canteen. Unsatisfied with the quality of existing chips, he started making his own. That simple decision transformed into a household brand. By 1995, Balaji had automated factories, and today the company records sales of ₹5,550 crore with profits of nearly ₹578 crore in FY24.

This growth has drawn the attention of global heavyweights like ITC, PepsiCo, General Mills, and Temasek, who are all in talks for a 10 percent stake at a valuation of ₹40,000 crore.

Cracking the Wafers Game

Snacking is not an easy business. Potatoes need to be of the right low-moisture, high-solid variety, oil prices are volatile, and distribution across kirana stores is highly competitive. Yet Balaji found ways to stand out. It leaned on Gujarat’s potato belt, built strong ties with farmers, and invested in cold storage to ensure steady supply year-round. By keeping its ₹5 and ₹10 packs sacred and offering more chips than competitors, Balaji built a strong trust with consumers who felt they were getting real value.

Distribution as a Growth Engine

Balaji’s strategy resembled that of D-Mart. It focused on saturating one state at a time, starting in Gujarat before expanding into Maharashtra, Rajasthan, and Madhya Pradesh. With a dense network of 1,200 distributors and over 4.5 lakh kiranas, Balaji ensured that its products were always within reach. Advertising spends remained low, but its presence at shop counters and word-of-mouth made the brand impossible to ignore.

Beating Global Giants at Their Own Game

Balaji’s dominance in Gujarat, Maharashtra, and Rajasthan has brought it to nearly 65 percent market share in these states. Nationally, it now stands as India’s third-largest salty snack brand behind PepsiCo and Haldiram’s. Even court battles with PepsiCo over packaging could not slow it down. Instead, Balaji rebranded, held onto its price-value promise, and emerged stronger.

The Road Ahead

As India’s snacks market is projected to double to over ₹95,000 crore by 2032, Balaji faces both opportunities and risks. National expansion will require balancing scale with local authenticity. Investors may push for premium offerings, larger advertising budgets, or even an IPO, but the brand’s success so far has come from simplicity, trust, and a deep understanding of its markets.

With new categories like noodles under the Gippi brand, Balaji is already showing its hunger for growth beyond wafers. What remains to be seen is whether it can keep its authenticity intact while stepping onto the national and global stage.

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