General Atlantic bets on Balaji Wafers, to buy minority stake

MUMBAI: US-based private equity (PE) firm General Atlantic is buying a minority stake in Rajkot’s Balaji Wafers amid growing investor appetite for local snack food brands. The companies did not disclose the financial terms of the deal announced on Thursday. General Atlantic, it is learnt, is picking up a 7% stake for over Rs 2,000 crore valuing Balaji Wafers at around Rs 35,000 crore. TOI reported on the deal last month. In a statement, the company said that it has entered into a definitive agreement to receive a strategic investment from General Atlantic. The transaction is expected to close later this year. Founded in 1981 by the Virani family as a home-grown business, Balaji Wafers has expanded beyond Gujarat to more than a dozen states, competing against domestic and global brands such as Haldiram’s and PepsiCo across retail shelves. With a portfolio spanning potato wafers, namkeen, noodles, chikki and confectionary, Balaji Wafers also exports to around 25 countries. Balaji Wafers plans to go for an IPO in about five years or so, founder & chairman Chandubhai Virani had said. “General Atlantic’s investment will support our efforts to establish and operate world-class facilities,invest in innovation and build a professional team to help drive the next phase of growth for the company. We are excited to extend our footprint across India while staying true to the quality and taste that our consumers trust,” whole-time director Keyur Virani said.