DHARMIL DHAMI

MBA 2021-23
RURAL MARKETING
INTERNAL ASSESSMENT 1
SUBMISSION DATE: 18-09-2022

PRODUCT SELECTED: CHIPS / WAFERS

COMPANY NAME: BALAJI WAFERS

BRIEF ON BALAJI
Though the dramatic rise of Balaji began in the last decade, the Virani family ventured into
the snack food business in the 1960s — they first sold sandwiches from a push-cart on
Lakhaji Raj Road. They later started selling from a moped and then took up a shop nearby.
“That shop is still there. and I go there sometime," Virani says.
A big opportunity came by when the local cinema halls wanted him to supply packed wafers.
The family scaled up the business--everything was done by expert chefs, there were no
automated machines. The Virani brothers used a moped to market the products.

In 1984, Virani visited Europe in search of automated machines. But he couldn't buy one as
they came expensive. He went back again in 1989 and this time the visit was successful. The

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family bought a 1,000 sq meter land near GIDC for the plant. A plant was installed in 1993
to expand capacity.

Sensing the popularity of his products among the large Gujarati diaspora in the UK and
Middle East, superstores from these regions approached him for co-packing. But he insisted
that he will launch the products under his own label. “We will grow on our own strength,” he
says.

Come Diwali, Balaji will commence Asia’s most modernised unit near Valsad with an
investment of Rs 50 crore, which he would raise through internal accruals. The unit would
process 9,000 kg of potato per hour, six times more than the existing unit in Rajkot. The new
production line will cater to Delhi, Kolkata and other cities of north India. Apart from
Gujarat, Balaji already has a strong presence in Rajasthan, MP and Maharashtra. A huge
order has also come from Reliance Retail, and from several airlines.

OVERALL MARKET OF THE PRODUCT

For the snacks industry, 2014 had started on a crispy note. In January, WestBridge Capital
Partners picked up a 25 percent stake in DFM Foods reportedly for ₹64.5 crore. The Delhi-
based company, which had blockbuster ring brand Crax, primarily catered to markets in
north, west and central India. Two months later, private equity fund Lighthouse bought
around 12 percent stake in the Rajasthan-based Bikaji Foods. The suitors were on the prowl.

Balaji Wafers Private Limited is a Non-govt company, incorporated on 22 Sep, 1995. It's a
private unlisted company and is classified as'company limited by shares'.

Company's authorized capital stands at Rs 5500.0 lakhs and has 96.18873% paid-up capital
which is Rs 5290.38 lakhs. Balaji Wafers Private Limited last annual general meet (AGM)
happened on 30 Sep, 2017. The company last updated its financials on 31 Mar, 2017 as per
Ministry of Corporate Affairs (MCA).

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MARKETING STRATEGIES ADOPTED BY THE COMPANY

● Balaji brand is not an outcome of intensive marketing and advertising

campaigns but has been created solely by the importance the company places
on delivering quality and affordable products and various CSR initiatives that it
has undertaken, making it a classic example of ‘word of mouth’ promotion.
● Balaji do not advertise its products nor run any retail schemes or promotions to
sell their products. Instead of misspending on superficial aspects like packaging
and design which does not really benefit either the company or the consumer,
Balaji believes in investing on ensuring that fresh and quality products reach
the market.
● Balaji does not use artificial flavors in its snacks and prefers to use local spices
which give a made-at-home taste to its snacks.
● Balaji has affordable price unlike other popular brands almost 50% less,
despite of in cost bearing process like engaging in research, sustainability,
product innovation and new manufacturing techniques this all is possible as
Balaji makes good use of freely available resources like water and air, it makes
biogas (worth approximately 15-20 lacs) to use in the canteen by treating waste
water from the plant, generates electricity worth 25-30 lacs which is used in the
plant. Benefits from these savings are transferred to the consumer. Apart from
all this, Balaji also concentrates on ensuring that it maintains good relations
with distributors & retailers who give the brand good visibility at the point of
sale.
● Balaji Group processes around 450,000 kg of potatoes per day and 400,000 kg
of namkeens per day. Balaji has a dense network of 550 distributors and its
products are sold upto 400,000 retail outlets across India.

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 Campaigns

Apart from colour, appearance and taste, what sets apart the best wafers are the crunch when
one bites into them. That said, a visit to the products page of Balaji Wafers will surely urge
one to buy a pack — the page opens with an irresistible ‘crunch’. Balaji is said to be the
second biggest brand in the potato wafer segment in India, without any promotions and
advertisements.

REFERENCES
● https://economictimes.indiatimes.com/industry/cons-products/food/balaji-gives-
jitters-to-competition/articleshow/2242806.cms?from=mdr
● https://economictimes.indiatimes.com/company/balaji-wafers-private-limited/
U15400GJ1995PTC027555
● https://brandyuva.in/2019/08/marketing-strategies-of-balaji-wafer.html