NEW FMCG BILLIONAIRES PACK A PUNCH

Homegrown brands take to diversification, digitisation to clock impressive numbers.

- AJITA SHASHIDHAR

RAJKOT’S FAMED Virani family’s love affair with potato chips started way back in early eighties when Chandubhai Virani, MD, Balaji Wafers and his brothers Bhikubhai Virani and Kanubha Virani managed the canteen of Astron Cinema, the local movie theatre. Having earned a reputation for quality potato chips he sold at several school and college canteens in the town, Chandubhai went on to acquire land on the outskirts of Rajkot in 1989 and set up a manufacturing plant for potato chips. A decade later Balaji Wafers was an established brand in Gujarat and had started expanding into adjoining Maharashtra. By 2010 it was a formidable competitor to market leader PepsiCo (Lays) and had started grabbing market share in western India.

The snack manufacturer has spread its wings in the north and south. “Our market share may be lower than Lays, but our growth is twice theirs. Our growth and market share are higher than ITC (Bingo!),” says Virani.

When Covid-19 hit the country in 2020, Balaji Wafers had a revenue of ₹2,500 crore. By the time the country was completely out of the grip of the pandemic in 2022, the company had more than doubled its revenue to ₹6,000 crore. “All odds were against us. Not only did the pandemic disrupt the supply chain, we were also impacted by the Ukraine-Russia war as edible oil prices went up 150%. I told my team we needed patience. With many companies cutting down on production due to disruptions caused by the pandemic and the geopolitical situation, we saw an opportunity. There was demand as consumers were locked up in their homes and were looking forward to healthy snacks. We hired more people and doubled our production. We also dialed up our distribution muscle,” says Virani. “We did suffer initial losses, but eventually our revenue soared to ₹6,000 crore,” he adds.