Every great success has a story, and Indian businessman Chandubhai Virani’s journey from humble beginnings to building a giant snack industry is truly inspiring. His story of overcoming adversity to become the owner of a large business empire is remarkable and embodies foresight, and unwavering spirit.
Born on January 31, 1957, in a poor farming family in Gujarat’s Jamnagar, Virani could not continue his study after the tenth grade due to financial constraints. At 15, his family moved to Dhundoraji village in the state seeking better opportunities. Here, he started a new life with his father’s modest savings. Today, Virani is the founder of Balaji Wafers, a household name in India’s snack industry. He started the company in 1982 with a small investment, initially producing potato wafers from his home. He, along with his brothers has now turned Balaji Wafers into a large snack empire. The company is on the verge of being valued at $4 billion (approximately ₹350 billion) with a major stake sale to American private equity firm General Atlantic. The deal is reported to be in the final stages.
How did he start the business?
Virani and his two brothers initially borrowed Rs 20,000 and started a business selling agricultural products and equipment in Rajkot. They tried to run it for 2 years, but the business failed. After this, the brothers had to do many odd jobs. To overcome the financial problems of the family, Virani worked in a cinema canteen, selling snacks and even pasting posters. He also worked repairing torn seats for a small salary. The financial crisis became so severe that he was about to be evicted from his house for not paying the rent. But with courage, he paid off all his debts.
A glimmer of hope emerged when the brothers received a contract for Rs 1,000 a month for their excellent canteen service. It was at this cinema hall that Virani noticed people’s strong liking for the wafers. Seizing this opportunity, he began making chips at home in a small shed with a capital of just Rs 10,000. The taste and quality of the chips were so excellent that people started appreciating them, which prompted Virani to take a more ambitious step.
Gujarat’s first potato wafer factory, Balaji Wafers
By 1989, they had set up Gujarat’s first potato wafer factory in Rajkot’s Aji GIDC. This venture was accomplished with the help of small chip sales and a bank loan. In 1992, the Virani brothers founded Balaji Wafers Private Limited. Interestingly, the company’s name was inspired by their beloved small idol of Lord Hanuman.
Balaji Wafers generated annual sales of Rs 6,500 crore and a net profit of approximately Rs 1,000 crore in the last fiscal year. The company dominates the market in Gujarat, Maharashtra, and Rajasthan, holding approximately 65% of the organised market for products such as potato chips, namkeen, and bhujia. Despite its relatively limited geographical presence, Balaji Wafers ranks as India’s third-largest salty snacks brand, trailing only Haldiram’s and PepsiCo.
