General Mills Eyes Stake in Balaji Wafers as Global Competition Intensifies for Indian Snack Leader

Unites State based food giant General Mills Inc is exploring an investment in Balaji Wafers, joining a crowded field of suitors that includes PepsiCo, ITC Ltd, and several private equity funds, according to a report by The Economic Times (ET). The talks center on acquiring a sizeable minority stake in the homegrown snack maker, one of India's strongest regional brands. 

Sources with knowledge of the discussions told ET that the Minneapolis-headquartered owner of brands like Pillsbury and Betty Crocker has approached Balaji's promoters with a proposal that could eventually lead to a controlling interest. However, Balaji's founders are, for now, prepared to offload only around 10%. General Mills had not responded to ET's queries at the time of publication. 

Confirming for the first time that a stake sale is being explored, Balaji founder Chandu Virani told ET the company is negotiating with several players but stressed that the exercise is about bringing in professional expertise, not funding day-to-day operations.

Chandu Virani:

"We have enough cash reserves and don't plan to sell out. Any capital raised will be placed in a family trust, not used for business requirements."

Virani added that the aim is to attract strategic partners capable of improving operational efficiency and preparing Balaji for a future listing.

Chandu Virani:

"Even Tata and Reliance approached us some months back, but we aren't willing to surrender control, even at a higher valuation."

The company, founded in 1982 as a small supplier of snacks to a Rajkot cinema hall, now clocks annual revenue of about INR 6,500 crore (USD 780 million) with a net profit of nearly INR 1,000 crore (USD 120 million) (FY25), ET reported. 

Balaji dominates the organised snack market in Gujarat, Maharashtra, and Rajasthan, with close to 65% market share in chips, namkeen, and bhujia in these regions. Despite its limited footprint, Balaji ranks as India's third-largest salty snack brand, behind Haldiram's and PepsiCo, thanks to its low-cost, high-efficiency model focused on value pricing and lean operations. 

For General Mills, whose Indian presence so far is confined to Pillsbury-branded baking mixes and flours, a deal with Balaji could mark a strong entry into the country's INR 45,000 crore (USD 5.4 billion) savoury snacks space, ET observed.

Balaji's strategy of spending just about 4% of revenue on advertising - compared to an industry norm of 8-12% - helps channel resources into production, keeping prices competitive without compromising quality, ET added. The company currently runs four plants and plans to double that count as it eyes national expansion.