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Temasek is mulling to invest in Balaji Wafers.
The Virani family-owned Indian snacks company has a strong presence in central and western India.
The development comes around a time when the market is projected to grow at an 8.63% CAGR.
Temasek is eyeing another acquisition in the Indian food and snacks sector in less than a year’s time. The Singapore government’s investment arm is mulling to invest in the Virani family-owned Balaji Wafers. The deal might value the Gujarat-based company at around ₹ 38,000-40,000 crore, the Mint reported.
“These are initial days, and the company is engaging with prospective investors, including Temasek, that is betting big on this space,” the Mint reported, citing a source. “Currently, the intention of the promoters is to sell around a 10% stake and unlock some value,” the source added.
The Virani family-owned snacks company is famous for its products like chips, noodles, and wafers. It has a major presence in central and western India, with more than 80% of its total revenue coming mainly from Gujarat.
The development comes almost a year after Temasek invested in homegrown food and snacking brands like Haldiram and Rebel Foods. The Singapore government’s investment arm acquired a 10% stake in Haldiram for $1 billion last year and infused funds worth $180 million in Rebel Foods. Rebel Foods runs cloud kitchens and stores for companies like Faasos, Behrouz Biryani and Oven Story Pizza.
Apart from this, Mukesh Ambani-led Reliance Industries, via its consumer products arm, acquired Bengaluru-based SIL Food India. Tata Consumer Products also has a joint venture with American giant PepsiCo to manufacture and sell packaged snack Ching’s Schezwan Chutney flavoured Kurkure.
These developments have come around a time when the Indian snacks market size is projected to grow at an 8.63% CAGR (compounded annual growth rate) from ₹46,571 crore in 2024 to ₹1,01,811.2 crore in 2033, according to a report by IMARC. The growth is fueled by rising disposable incomes, a growing young population, and increasing demand for ready-to-eat snacks, the report added.
“The major drivers of India snacks market include rapid urbanisation and a gradual shift in consumer lifestyle towards various convenience foods,” the IMARC said in its report.
Major players in the sector include Balaji Wafers & Namkeens, Bikaji Foods International, Bikanervala, Haldiram Snacks Food, ITC, Parle Products, PepsiCo, Pratap Snacks, Sundrop Brands, and TTK Foods.
