Private equity investor Advent has acquired a significant minority stake in Iscon Balaji Foods (IBF) in a $150 million deal, according to a joint statement released on Tuesday. The transaction represents a significant investment in Gujarat's frozen potato snacks manufacturer, though specific details of the transaction structure were not disclosed in the announcement. The investment forms part of a broader $215 million Series A funding round by IBF, which has also secured backing from local asset management firm 360 One. As reported by the companies, this fundraising round demonstrates strong investor confidence in the frozen potato products sector and the company's growth prospects.
IBF reported ₹1,185 crore in consolidated revenue from operations in FY24, highlighting the company's strong financial performance and growth trajectory. The investment will accelerate Iscon Balaji's growth and strengthen its operating platform and product capabilities, positioning the company for expanded market presence in the competitive frozen food sector.
IBF operates in the $60 billion global frozen potato products market and manufactures and exports a range of frozen potato snacks including French fries, hash browns, coated fries and other speciality products. According to the company statement, IBF supplies its products to quick service restaurants and food-service distributors while also retailing frozen foods under the Hungritos brand to consumers. The company was founded in 2012 as a joint venture between Balaji Wafers and Iscon Group. The business is currently in the process of increasing its processing capacity significantly over the next six months with a new modern manufacturing facility in Gujarat, positioning IBF to further strengthen its presence across global markets including India, South and Far East Asia, West Asia and Australia.
Neel Kotak, Chief Executive Officer of Iscon Balaji Foods, stated that Advent is the right partner for the company's next phase, bringing not just capital but a strategic sounding board on big decisions ahead, valuable relationships and deep operational expertise from scaling businesses internationally. Sahil Dalal, Managing Director at Advent, highlighted that the combination of structural cost advantages, a rapidly expanding export footprint, disciplined execution, and a founder-led team with real ambition makes this a distinctive partnership. The investment will help accelerate IBF's next phase of growth across international and domestic markets while continuing to strengthen the company's operating platform and product capabilities.
The investment reflects a broader trend of foreign private equity capital flowing into India's food sector, as reported by the companies. Investors are seeking to diversify their portfolios and capitalize on segments driving India's consumption growth, with households increasingly spending on different ranges of snacks and experimenting with new brands and flavours due to higher disposable incomes and exposure to newer food recipes.
