This is how a 10th-pass canteen worker built a Rs 4000 crore turnover potato wafers brand starting with just Rs 10000!
Today we talk about the amazing story of Balaji Wafers which is India’s second-largest chips maker behind Lays!
A thread, do retweet :)
1/n
Chandubhai Virani was 15 Yrs old when the family moved to Dhundoraji (Jamnagar), 79 km from Rajkot
His father late Popat Virani sold parched land and gave ₹20000 to his sons in 1972 - Meghjibhai, Bhikhubhai, and Chandubhai to start a new life by moving out of the village
2/n
The trio started a small venture in agricultural products and farm equipment in Rajkot
It flopped after 2 years, and the brothers started working in Astron Cinema’s canteen
Chandubhai, a Class X pass, found a job in Astron Cinema
3/n
His main job was to serve at the canteen, but he also did odd jobs like sticking posters, door-keeping, and ushering for a monthly salary of Rs 90!
“At night after the shows, I repaired torn seats and got a plate of chorafari (A Gujarati snack) in return," says Chandubhai
4/n
“We lived in a rented place, but one night we ran away from there because we did not have even Rs 50 to pay as rent.” (He later paid the landlord back.)
No work was too large or too little for Chandubhai
5/n
After a year, the movie canteen owner was so impressed that he offered him and his siblings a contract for Rs 1,000 per month
The entire family had relocated to Rajkot by 1982, and Ramjibhai had purchased a home with a big compound
6/n
The family made masala sandwiches for the cafeteria; they were popular, but they were perishable
Chandubhai viewed wafers as a potential product due to the popularity of the wafers sold at the theatre, with demand outstripping supply week after week!
7/n
After canteen work, Chandubhai set up a tiny shed in the courtyard with an estimated cost of Rs 10,000 and began his trials with producing chips
The Virani brothers decided to make potato chips at their tiny, one-room home -
8/n
The Virani variety found takers, not just within the cinema hall but outside, too.
Balaji Wafers - the brand name was inspired by a small glass idol of Lord Hanuman kept in the room of the Viranis!
9/n
In 1989, Chandubhai opened a business in the Aji GIDC region of Rajkot, which was then Gujarat's largest potato wafer facility, with modest revenues and a bank loan of roughly Rs 50 lakh
Balaji Wafers Private Limited was founded in 1992 by the 3 brothers
10/n
Balaji Wafers today -
2017 - Revenue reached Rs 2000 crore, making it a leading regional potato wafer and snacks brand in India and the second-largest player in the potato wafer market
As of FY21, Wikipedia states their revenue to be Rs 4000 Cr
11/n
Balaji Wafers even had a buyout offer worth Rs 4000 Cr. But they declined!
Balaji now has 4 factories in India, with a combined processing capability of 6.5 million kg of potatoes and 10 million kg of namkeen per day.
12/n
Their third factory in Valsad (2008 opening) can handle 9,000 kg of potatoes per hour, which was the biggest capacity in Asia at the time
In 2016, a high-tech, completely automated facility was opened in Indore
12/n
Balaji Wafers sells 13 flavors of Wafers, 22 flavors of Namkeens, and 15 flavors of Western Snacks, and has over 125+ SKUs
50% of the workforce at Balaji is women and the total number of employees stands at 5000.
13/n
How did they beat the MNCs?
- By providing quality products, delivery, and pricing
- Importance of tech in scaling up - In 1996 the company installed its first semi-automatic plant with a capacity of 250 kg potato chips/hour. By 1999 it was working at full capacity
14/n
- They define their business in just one word –‘Pull’
- “We just focus on quality, which is the biggest pull for consumers.”
- “Woh dimaag se kaam lete hain. Hum dil aur dimaag donon istamaal karte hain (We use both: Our heart as well as brain),” he says.
15/n
- The company has no sales or revenue targets
- Even their grammage is more when compared to other chips players!
Any IPO plans?
- “Why an IPO?. I don’t need money. I never needed it.” - Chandubhai Says!
End of thread! Thanks for reading!
Sources Used - Company Site, Forbes India, The opinionated Indian, Entrepreneurstoday dot in, clueless company, moneycontrol article, Economic times
Images – Company Site, The weekend leader, Google, Forbes India
You can retweet the original tweet here -
This is my 51st thread in 2023!
Follow me @aditya_kondawar for more such fun threads!
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.