MAHATMA EDUCATION SOCIETY

PILLAI COLLEGE OF ART, COMMERCE &

SCIENCE (AUTONOMOUS) NEW PANVEL

TITLE OF THE PROJECT: BALAJI WAFERS

SUBMITTED BY: SAMREEN DAKHWE
CLASS: SYBMS (MARKETING)
ROLL-NO: 5861
SUBJECT: STRATEGIC MANAGEMANT
INTRODUCTION OF THE COMPANY
Balaji Wafers and Namkeen group, based in Rajkot, Gujarat,
India, manufactures and distributes potato chips and other grain-
based bagged snacks in various flavours. Started as a micro-
business, it has evolved into a Rs 2000 crore company of
products with an indigenous taste.
Balaji Wafers began as a micro-retail enterprise in
1974,managed by the Virani brothers at Astron Cinema, Rajkot.
By 1982, spurred by the initiative of Virani brothers , this grew to
a home-based manufacturing venture. A decade later, the
brothers set up an international standard automatic plant in
Gujarat, with steps to increase capacity and quality. In 2000,
Balaji Wafers installed its first fully automatic plant. By 2014,
Balaji Wafers captured a 70% market share in snacks market.
Today, the company employs more than 1800 personnel in their
Rajkot and Valsad manufacturing facilities. Balaji has the capacity
to manufacture 100,000 kg of potato wafers, along with 500,000
kg of savouries per day.
HISTORY OF BALAJI WAFERS
Balaji company started in 1976 by the members of Virani Group, when
Chandubhai and his brothers Bhikhubhai and Kanubhai migrated from a small
village Dhun Dhoraji, Jamnagar district of Gujarat. Their father Popatbhai
Virani was a farmer, who sold ancestral agriculture land and gave Rs. 20,000
to them to venture into business.
The Viranis invested in farm equipment but could not succeed and lost the
money. Kakubhai and his brothers started a wafer business from a canteen of
a cinema hall in Rajkot in 1974. Until 1989, the wafers were produced at the
Viranis house and distributed in and around Rajkot city.
By their retail success they were inspired to set a semi-automatic plant
instead of preparing wafers by the traditional frying method. The product
gradually reached every part of Gujarat, and the Viranis wanted to take over
the whole western India, so the biggest automatic plant of Gujarat came into
the picture.
In the initial stage Balaji Wafers Pvt. Ltd. maja set up their plant at Aji
Vasad (Industrial Zone, Rajkot) with a new concept of making potato chips.
The main benefit they got is the readymade infrastructure availability due to
which their cost was reduced to large extent. They operated there for around
22 years.
 Balaji Wafers then set up their new fully automatic plant near Metoda G.I.D.C.
which is in the area of the village Vajdi, outside the town of Rajkot.
Balaji Wafers had a tremendous growth in the chips sector in the 2007-2016
decade, outwitting the marks of major players like Lays', Kurkure, Parle and Bingo.
The company aims at a similar market grab in the frozen foods and fries sector
dominated by McCain Foods, by launching a new line of production under the
Iscon-Balaji Foods brand.
Entrepreneurship was thrust on the Virani brothers at a young age, when
drought forced their father to sell ancestral agricultural land and give his sons a
mere Rs. 20,000, with the advice to go forth and start a business. The road ahead
saw Bhikhubhai, Chandubhai and Kanubhai fail at their first venture of fertilizers
and then take up working at a boarding mess in Rajkot. Two years later, the
brothers got associated with Astron Cinema and performed all necessary jobs with
immense sincerity. This led the owner to offer them a profit sharing deal for
running the canteen. The Viranis initially bought prepackaged snacks for patrons.
Subsequently, the brothers got into sourcing unpackaged wafers and finally started
making them themself at their residence.
This was their first own production and soon, the brothers decided to sell their
product “Balaji Wafers” not just to the Astron visitors, but also to customers
outside. This was easier said than done, due to a harrowing experience of half-
eaten packets returned by shopkeepers and soiled notes being paid.
 However, the Viranis persisted and ultimately created a name
that was so deeply respected, that it nearly wiped off all other
competition. The moped, which carried the wafers to the market,
soon gave way to an auto and then to a tempo taking financial
support through a nationalized bank.
Realizing that the key to constant success and profits was
quality, The brothers ensured that if cooks failed to show up, he
personally made the wafers and insisted on the best quality raw
material to make Balaji wafers a premium product. Taking
inspiration from the bittersweet experiences in life, the Viranis
went on to create different snacks that were then sold under the
same brand name of ‘BALAJI’.
The key elements behind the phenomenal success of Balaji are
the strong fundamental values of Virani brothers, which chiefly
include “Trust, Passion and Steady Hard Work!”
 CURRENT BOARD OF DIRECTOR
Chandubhai
Virani Founder
and Managing
Director of
Balaji Wafer

Chandubhai Virani
(Founder and
Managing Director
of Balaji Wafers)
 When Managing Director Chandubhai Virani unleashed his
homemade snacks on the market nearly half a century ago, locals
couldn’t have guessed Balaji Wafers would become one of India’s
most successful snack manufacturers.
Balaji, in Hinduism, represents the vigraha Hanumanji (or
Bajrangbali). One might wonder why Co-Founder and Managing
Director Chandubhai Virani picked the name for one of India’s most
successful snack companies, Balaji Wafers.
FINANCIAL STATUS OF BALAJI WAFERS
The Authorization capital of Balaji Wafers is Rs.28500000/-.
Paid capital of Balaji Wafers is Rs.5238000/-. According to the
records of Ministry of corporate affairs (MCA) last balance sheet
date of Balaji Wafers was submitted on 31/03/2015. As per the
MCA the last annual general meeting of Balaji Wafers as held on
30/09/2015.
NAME Balaji Wafers
AUTH CAPITAL 28500000
PAID CAPITAL 5238000
NUM MEMBERS 0
LAST AGM DT 27555
BALANCE SHEET DT Company limited by shares
 INTERNAL MANAGEMENT OF BALAJI
WAFERS
Rajkot-based snacks maker Balaji Wafers Private Limited is
setting up a new production facility at Indore in Madhya Pradesh.
The company plans to invest about Rs 400 crore in a phased
manner in the next two or three years.
"As part of our expansion, we acquired land in Indore some
months back. Construction work is going on and it will be over
within the next year and a half," said Keyur Virani, director, Balaji
Wafers Private Limited.
He setting up of a production unit in Madhya Pradesh is part of
the company's plan to tap markets in the North Indian market.
Virani said, "With this new plant, we will be able to cater to
Madhya Pradesh, Rajasthan, Delhi and surrounding areas. The new
plant will manufacture all the products of Balaji."
 CURRENT SCENARIO
Balaji Wafers plans to enter the north and south Indian market
and also set up manufacturing units there. To fund this expansion
project, the company had earlier decided to offload 15 per cent
stake. The company had hired Ernst and Young to find suitable
investors, and so far around 15-20 investors have shown interest.
Several multinational heavy weights like Kellogg’s India and Pepsico
had shown interest to acquire a stake in the Rajkot based company.
Its current turnover is over Rs 1,200 crore and is expecting 25-
30 percent growth in 2014-15.The company had doubled its
production capacity in 2013 at its Valsad plant in south Gujarat with
an investment of Rs 50 crore in line with its strategy to expand
beyond west India. Rajkot plant produces 1,200 kg potato wafers
per hour while in Valsad plant production capacity is around 2,500
kg per hour.
 PRODUCTS OF THE BALAJI WAFERS
Balaji has positioned itself with an Indian twist.
1) It has launched their 8 Flavours in potato chips & 13
varieties in Namkeens, which were carefully
introduced by their R & D dept.
2) Initial offering were the mix of wafers.
3) The potato chips includes varieties like plan wafers,
chat chaska, masala wafers etc. Inspired by the
sancking habits of India.
4) The offering under the Namkeens Aloo sev, channa
Dal, chataka-phataka masala, Fharali chivda, moong
Dal and so on.
MARKET SEGMENTATION & TARGET
AUDIENCE OF THE COMPANY