ITC shares in focus as reports suggest FMCG giant eyeing stake in Balaji Wafers

Shares of ITC Ltd were in focus on Friday following reports that the FMCG major, along with PepsiCo and private equity (PE) firms such as TPG and Temasek, is in the race to acquire about 10 per cent in privately held snack maker Balaji Wafers. The deal could value the company at nearly Rs 40,000 crore, according to people cited by The Economic Times.

The report said a mix of strategic investors and PE players are being approached. “Some of the discussions with strategic investors are still exploratory, as several players are keen on a stake of more than 10%,” one of the persons told ET.

ITC’s snack brand, Bingo, launched in 2007, competes in potato wafers and salty snacks but remains a smaller part of its food portfolio compared with Aashirvaad atta and Sunfeast biscuits. It also faces tough competition from larger rivals in both western and ethnic snack formats.

ITC, PepsiCo, and Temasek did not respond to ET queries. TPG declined to comment, while Chandubhai Virani, founder and managing director of Balaji Wafers, could not be reached. Business Today could not independently verify the report.

The interest highlights how regional snack brands in India continue to attract strong investor appetite, often outpacing growth at larger food companies. In March, global investors IHC, Alpha Wave Global, and Temasek together acquired nearly 10 per cent in Haldiram Snacks Food at a valuation of over $10 billion — the largest packaged food deal in India so far.

ITC shares are up 2 per cent in the past five sessions, even as the sin tax has been raised to 40 per cent from 28 per cent earlier. Analysts noted tht GST rate will now be applicable on maximum retail price (MRP). This is against the transaction value earlier. Besides, ITC is an FMCG giant and brokerages said a significant reduction in tax burden due to drop in GST tax to 5 per cent from 18 per cent on items such as sauces, pasta, instant noodles, vegetables, saps and extracts, talcum powder, hair oil and shampoo, toothpaste, among others, may benefit FMCG firms such as ITC.