Haldiram and Balaji Wafers are the main reasons why international investors are investing billions in Indian bhujia and namkeen.

To get a slice of the rapidly expanding ₹1 lakh crore Indian snack market, foreign private equity groups are investing heavily in Indian snack companies like Balaji Wafers and Haldiram. More investors are drawn in by strong sales growth, IPO aspirations, growing demand for packaged snacks, premiumization tendencies, and enormous export possibilities.

Indian producers of bhujia, wafers, and namkeen are attracting a lot of interest from foreign private equity (PE) funds. Recent high-profile purchases in this area show that these PE funds are investing heavily in the local snack market. For ₹2,500 crore, US-based private equity firm General Atlantic purchased a 7% share in Balaji Wafers, valuing the business at ₹35,000 crore.

Temasek, a Singaporean investment group, paid ₹8,500 crore for a 10% share in Haldiram Snacks Food, which was valued at $10 billion (₹85,000 crore).

Alpha Wave Global and International Holding Company (IHC), another private equity firm, paid ₹5,600 crore to purchase a 6% share in Haldiram Snacks Food. Why are PE funds investing in the snack sector in India?

Significant development potential: International investors are expressing interest in domestic packaged food companies, particularly in well-known big brands with a robust distribution network and devoted customer base. In addition, there is a lot of potential due to growing urbanization, increased disposable incomes, and a slow transition to packaged on-the-go snack options. According to research firm Kantar, households used 12.8 kg of packaged snacks overall in FY25. Robust financial results: Haldiram Snacks Food and Balaji Wafers both have robust financial results and sales growth. Balaji Wafers reported revenue of ₹5,454 crore and profit of ₹579 crore in FY24, up from ₹5,010 crore and ₹411 crore the year before. With a market share of more than 40% of the Indian snack and savory market, Haldiram Snacks Food generated over ₹14,000 crore in revenue and ₹1,500 crore in net profit during that time. Strong sales, brand loyalty, and effective operations are typically preferred by PE firms. Plans for IPO and expansion: Balaji Wafers may be able to expand its statewide distribution network by selling a stake to a private equity group. Additionally, PE infusion will facilitate the company's impending IPO. In the meantime, Haldiram Snacks Food intends to go public in a year. An IPO is probably going to be made possible by the recent merger of Haldiram's Snacks Private Limited (Delhi) with Haldiram's Food Private Limited (Nagpur). The company will be able to reach the overseas market and increase its presence thanks to the PE stake sale. Blackstone, Tata Consumer Products, ITC, and other US-based companies had previously attempted to purchase a share in Haldiram Snacks Food but were unsuccessful because to the lesser valuation offered. In 2014, Balaji Wafers turned down a purchase offer from a global corporation. Size of the Indian snack market

The domestic snack market was valued at ₹46,571.3 crore in 2024 and is projected to reach ₹1.01 lakh crore by 2033, with a compound annual growth rate (CAGR) of 8.63% between 2025 and 2033, according to market research firm IMARC. Positive catalyst for the sector

 Rapid urbanization and increased disposable income, which enables individuals to spend more on processed foods, are the main factors driving India's snack sector. In addition, people are favoring packaged foods that are consistently high-quality and hygienic over loose local goods. Packaged snacks are becoming more popular due to their strong penetration in tier-2 and tier-3 markets. Shifting patterns in the sector

Premiumization and value-added product trends, including as baked snacks, flavored chips, and value-added namkeens, are also helping the domestic snack market and boosting profit margins for businesses. New and established businesses are being encouraged to provide new goods and gain market share by other significant trends, such as an increase in health-conscious snacking and a rising demand for regional and ethnic flavors. Export potential

Namkeen and bhujia have enormous unrealized export potential for domestic regional players due to their popularity among Indian diaspora and international consumers. Currently, Haldiram Snacks Food exports to more than 60 nations, including the United States, the United Kingdom, Australia, the Middle East, Germany, and New Zealand. All things considered, the increasing interest from international private equity groups suggests that India's ethnic snack sector is entering a new stage. Consumers are moving toward packaged snacks due to growing demand, which might create a billion-dollar international market for Indian bhujia, wafers, and namkeen. Although Haldiram and Balaji Wafers have the advantage of being the first to market, numerous new businesses are also launching cutting-edge goods to attract investors.