Global Investors Eye India’s Booming Packaged Food Sector as Balaji Wafers Secures Rs 2,500 Crore Investment

India’s fast-growing packaged food and snacks sector is once again in the spotlight, with US private equity major General Atlantic (GA) in the final stages of acquiring a 7 per cent stake in Balaji Wafers for Rs 2,500 crore, valuing the Gujarat-based snack maker at nearly Rs 35,000 crore (USD 4 billion). According to market sources, the deal is now at an advanced stage and a formal announcement is expected soon. Balaji’s founder and managing director, Chandu Virani, confirmed that negotiations have been finalised, saying, “It’s a done deal from our side. The GA team is reviewing the agreement.”

Deal Overview: A Strategic Bet on India’s Snack Boom

The Rs 2,500 crore investment marks one of the largest private equity transactions in India’s regional FMCG space. GA’s stake purchase is expected to be secondary in nature, indicating that existing shareholders, primarily from the promoter family’s next generation, are monetising a small portion of their holdings to bring in strategic global capital. This funding round values Balaji at Rs 35,000–40,000 crore, positioning it firmly among India’s top consumer goods players. The transaction will help Balaji expand its manufacturing and distribution footprint beyond western India and scale operations nationally. It is also expected to be the last pre-IPO capital raise before a potential public listing in the coming years.

About Balaji Wafers: From a Theatre Stall to a Rs 6,500 Crore Brand

Founded in 1982 by Chandu Virani and his brothers as a small snack supplier at a Rajkot cinema canteen, Balaji Wafers has become one of India’s most recognisable homegrown snack brands. The company generated Rs 6,500 crore in annual revenue and nearly Rs 1,000 crore in net profit in FY25. It holds a 65 per cent market share in the organised snacks category across Gujarat, Maharashtra, and Rajasthan, offering potato chips, namkeen and bhujia at affordable price points.

Despite its regional concentration, Balaji is the third largest salty snack brand in India, trailing only Haldiram’s and PepsiCo. Its remarkable rise is credited to a low-cost, high-efficiency model that spends only 4 per cent of revenue on advertising, compared to the industry average of 8–12 per cent, reinvesting savings in production and supply chain capacity. The company operates four manufacturing plants, which it plans to double in the next few years. GA’s investment is expected to accelerate this national expansion, along with marketing, innovation, and brand-building initiatives.

Sector Spotlight: India’s Packaged Food Industry on a Strong Growth Trajectory

India’s packaged food market reached USD 121.3 billion in 2024 and is projected to hit USD 224.8 billion by 2033, growing at a CAGR of 6.5 per cent. Within this, packaged savoury snacks and sweets account for 33.4 per cent, representing a market worth approximately Rs 3.75 lakh crore.

Growth in this sector is being driven by:

• Urbanisation and rising disposable incomes, especially among millennials and Gen Z.
• Shift toward convenience and ready-to-eat foods in metro and Tier II/III cities.
• Expansion of modern retail, e-commerce, and quick commerce platforms.
• Increasing investments in cold-chain logistics and food processing infrastructure.
• Government support for food processing and the “Make in India” initiative.

This structural momentum has triggered significant private equity interest. Just earlier this year, Haldiram’s sold over 10 per cent to Temasek, Alpha Wave Global, and International Holding Company at a valuation exceeding USD 10 billion, making it the largest food sector deal in India.

Competitive Landscape: Balaji Joins the Global Investor Radar

The Indian packaged snacks sector is dominated by a mix of family-run regional giants and global FMCG players. The top three Haldiram’s, PepsiCo, and Balaji Wafers command a significant share of India’s Rs 3.75-lakh-crore snack market. While Haldiram’s leads in traditional namkeens and sweets, PepsiCo’s Lay’s and Kurkure dominate the modern chips and extruded snacks segment. Balaji Wafers bridges the two with an affordable, mass-market range that blends Indian flavours with value pricing. Beyond these leaders, listed peers such as Bikaji Foods, Gopal Snacks, and Prataap Snacks are capturing investor interest due to their growth potential and strong brand recall.

Key Listed Players in India’s Packaged Snack Segment

Why Investors Are Bullish

Untapped Market Potential: Per capita snack consumption in India remains far below global averages, leaving room for expansion.

Regional Strengths Turning National: Brands like Balaji and Gopal are scaling nationally, replicating their regional success.

M&A Momentum: Global funds and strategic players are increasingly acquiring stakes in Indian food companies.

Health & Premiumization Trends: New-age players like Epigamia, Nutty Yogi, and Munchilicious are reshaping demand for healthier and premium snacks.

Investor Takeaway

General Atlantic’s Rs 2,500 crore bet on Balaji Wafers reinforces a clear message: India’s packaged food and snacks sector is entering its next growth phase, where regional champions are transforming into national powerhouses. As Balaji readies for national expansion and a potential IPO, it joins a wave of Indian consumer brands attracting global private equity and sovereign wealth fund attention. With a projected market size of over USD 225 billion by 2033, strong consumer demand, and expanding modern retail penetration, India’s packaged snack industry presents one of the most compelling growth stories within the FMCG landscape. For investors, Balaji’s upcoming deal is more than just a regional success; it's a reflection of the global appetite for India’s evolving food story.