Business

Once worked as 'snacks seller', now owns Rs 5000 crore company

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Chandubhai Virani

Chandubhai Virani, born into a Gujarati farming family, operated a movie theater snack shop in 1976 with his brothers for a rent of Rs 1,000 per month.
 

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Idea to save cost

Virani and his brothers, lacking wafers, opted to make their own, purchasing a potato-peeling machine and slicing potatoes, then soaking them to create homemade wafers.
 

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Expanded their business

Over five years, the brothers started selling wafers to people in cinema halls. People loved them, so they got loans to grow their business, by selling chips outside theaters.
 

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Market position

With a 12% market share, it currently has the third-largest position in India's Rs 43,800-crore salty snack market, behind PepsiCo (15%) and Haldiram's (21%).
 

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PepsiCo offered Balaji

In 2014, Pepsico wanted to buy Balaji when their revenue hit Rs 1,000 crore, but Virani refused. By last March, revenue reached Rs 5,000 crore.


 

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Business Strategy

The core of the Balaji business model is providing goods at a 20–30% lower cost than national brands while maintaining consistent volume through economies of scale. 

 

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Ultimate Success

 

Balaji Wafers, a family-run company with 7,000 employees, is admired for refusing to sell to Pepsico, showcasing its dedication to its identity.

Image credits: Instagram
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