Private equity investor Advent has acquired a minority stake in Gujarat-based Iscon Balaji Foods (IBF) as part of a $150 million deal, the companies announced in a joint statement on Tuesday. The investment is part of IBF's broader $215 million fundraise, which also includes backing from local asset management firm 360 One. Specific details regarding the transaction, such as valuation and shareholding percentage, were not disclosed.
IBF's Business and Market Position
IBF specializes in manufacturing and exporting a variety of frozen potato snacks, including French fries and hash browns. The company supplies its products to quick-service restaurants and food-service distributors, and also retails under its brand Hungritos to consumers. Founded in 2012, IBF is a joint venture between Balaji Wafers and the Iscon Group, operating in the global frozen potato products market, estimated to be worth $60 billion.
Growing Foreign PE Interest in India's Food Sector
The investment reflects a broader trend of foreign private equity capital flowing into India's food industry. Investors are seeking to diversify portfolios and bet on segments driving consumption growth, as households spend more on snacks and experiment with new brands and flavors due to higher disposable incomes. Earlier this year, General Atlantic acquired a minority stake in Balaji Wafers, while L Catterton, Temasek, IHC, and Alpha Wave Global invested in Haldiram Snacks Food last year, valuing the company at $10 billion.
Strategic Partnership and Advisory
Advent, which holds investments across sectors in India including a stake in snack maker DFM Foods (known for its Crax brand), brings strategic value to IBF. Neel Kotak, CEO of IBF, stated, "Advent is the right partner for what comes next, bringing not just capital, but a strategic sounding board on the big decisions ahead, valuable relationships, and deep operational expertise from scaling businesses internationally." Avendus acted as financial advisor to IBF for the transaction. IBF competes with players such as McCain Foods and HyFun Foods.
