Mumbai: US food giant General Mills Inc, maker of Pillsbury and Betty Crocker, has entered talks to buy a stake in Balaji Wafers, joining a crowded field of suitors including PepsiCo, ITC Ltd, and several private equity firms.
According to people familiar with the matter, the Minneapolis-based multinational has approached Balaji’s promoters for a potential majority stake. However, the founders are currently open to selling only about 10%. General Mills did not respond to queries until press time on Wednesday.
Balaji Wafers confirmed that it is in early discussions with multiple players. “This fundraiser is about bringing in professional management, not capital for operations. We are cash-rich,” founder Chandu Virani told ET, marking his first public acknowledgment of the stake sale. He added that proceeds would go into a family trust, while the company also weighs a possible initial public offering.
The Rajkot-based snack maker is reportedly considering divesting at an estimated valuation of nearly ₹40,000 crore, with a shortlist of potential investors expected in three months. Balaji posted annual sales of ₹6,500 crore and a net profit of nearly ₹1,000 crore in FY25.
Despite its stronghold mainly in Gujarat, Maharashtra, and Rajasthan, where it commands about 65% of the organized salty snack market, Balaji ranks as India’s third-largest snack company after Haldiram’s and PepsiCo. Its low-cost, efficiency-driven model — spending just 4% of revenue on advertising versus the industry’s 8–12% — has helped it scale rapidly. The company runs four factories and plans to double capacity for a national expansion.
For General Mills, whose India presence is limited to Pillsbury-branded flour and baking products, a deal with Balaji could provide a strategic foothold in India’s fast-growing ₹45,000-crore savory snack market.