From Humble Beginnings: Chandubhai Virani’s Early Struggles

The story of Balaji Wafers starts with its founder, Chandubhai Virani. He was born in 1957 in Dhundhoraji, a small village in Gujarat. His village was very poor. No house had electricity, and most families depended on farming to live. Life was already hard.

In 1972, a severe drought hit India. It was the worst drought in 70 years. Crops failed for millions of farming families, including Chandubhai’s. His family lost everything. His father had to sell their family land for ₹20,000. He split this money among his three sons.

With ₹600 and his two brothers, 17-year-old Chandubhai moved to Rajkot. He wanted to start a small fertilizer business. But bad luck struck again. The supplier cheated him with fake fertilizers. His business failed before it even started, and he lost all his money. Chandubhai had nothing.

But he refused to give up. He knew he could not go back to his village empty-handed. He could not bring shame to his father. So, he looked for work in Rajkot with all his might.

A Crucial Opportunity at Astron Cinema

Chandubhai eventually found a job at Astron Cinema. His salary was only ₹90 a month. For him, this job was not about money, but about learning. He did every task given to him. He put up film posters, worked as a doorkeeper, checked tickets, cleaned the cinema, and even fixed torn seats.

His hard work paid off. The cinema owner was impressed. He offered Chandubhai the contract for the cinema canteen. Chandubhai would pay ₹1,000 each month. In return, he would keep all the profits from the canteen.

In the canteen, Chandubhai mostly sold masala sandwiches, potato wafers (chips), and drinks. Within weeks, he noticed something important. Eighty percent of the canteen’s sales came from potato chips. Most sales happened during the 10-15 minute movie interval.

But there was a problem. Chip suppliers often delivered late or gave too few chips. This meant Chandubhai lost money during busy intervals because he did not have enough stock. After six years of this problem, Chandubhai made a big decision in 1982. He decided to make his own potato wafers.

The Birth of Balaji Wafers

Making his own chips gave Chandubhai control over quality and quantity. It also meant higher profits. Near Astron Cinema, there was a Hanuman temple. Inspired by this, he named his new brand “Balaji Wafers.”

Chandubhai put ₹10,000 into this new business. He built a small shed in his house compound. Industrial potato peeling and cutting machines were very expensive. So, he bought parts separately and built his own machine for ₹5,000. The rest of the money went into buying a large cooking pot (kadai) and other tools.

Their chip-making process was simple. Peeling, cutting, frying, and packaging all happened in the same room. Chandubhai managed the canteen during the day. At night, he came home and fried wafers himself. His entire family helped to save money on labor.

Focusing on Customer Value and Taste

Years of working in the canteen taught Chandubhai a key lesson about customers. They wanted value for money. This meant getting the most chips for the lowest price. From the start, Balaji Wafers offered 25 to 30% more chips than its competitors.

Chandubhai and his brothers had spent their lives in Gujarat. They knew local tastes well. This helped them create flavors that customers loved.

At first, Chandubhai sold chips only in the Astron Cinema canteen. When people liked them, he wanted to grow. He first got a contract to supply wafers to a girls’ high school canteen. Then, he started supplying chips to 25-30 local shops in Rajkot.

But there was still a problem. When he went to these shopkeepers on his bicycle, they often treated him poorly. They saw him as a beggar. This disrespect only made him stronger.

Another issue was quality consistency. Many processes were still done by hand. When production increased, chip quality sometimes varied. There were also problems with packaging. Chips would sometimes go stale, leading to customer complaints.

Modernizing for Consistent Quality

To fix quality problems, Chandubhai decided to become an expert in making potato wafers. For example, he learned that potatoes are 80-85% water. Chips made from potatoes with more “dry matter” (ideally 20-23%) tasted better. With practice, he could tell a good potato for chips just by holding it.

He also learned the perfect thickness for slicing chips. He understood the right oil temperature and how long to fry the wafers. He knew how to wash potatoes and exactly how much spice to add. He became a master of chip making.

But he knew his personal expertise was not enough. He needed a way to make high-quality wafers on a large scale, using his methods. So, he took a big risk. He borrowed ₹50 lakh and built his first semi-automatic wafer manufacturing plant.

The plant was 1,000 square meters. It could make 60 kg of wafers daily. Chandubhai hoped this plant would bring better, consistent quality and branded packaging.

Overcoming Unexpected Challenges

Just as the plant was being set up, a major problem hit. The company building the plant suddenly shut down. Chandubhai had spent ₹50 lakh. He was left with a plant that was not properly built or set up for his needs. He was close to going bankrupt.

Chandubhai and his brothers jumped into action. They took apart each machine and tried to understand how it worked. Through trial and error, they learned. They became self-taught engineers. In the end, they fixed the machines themselves, and production began. The chip-making process Chandubhai had perfected was now automated.

Balaji Wafers quickly saw the benefits. They started supplying chips to shops in Rajkot and many nearby areas. Problems with packaging and quality almost disappeared.

This experience strengthened Chandubhai’s belief that investing in machines, equipment, and technology was the best investment. In 1995, he built another semi-automatic plant. In 2002, he opened a fully automated factory. At that time, it was the largest potato chips factory in India.

By offering better quantity, quality, and packaging at a lower price, Balaji Wafers began to beat both unbranded and branded chips. By 2006, they had 90% of the market share in Gujarat and were number one.

Expanding Beyond Gujarat: Innovation and New Products

Chandubhai did not want to stay a regional brand in Gujarat. He wanted to expand to more states. He knew this would require big changes in products, marketing, and human resources.

Until then, their main product was masala wafers. But for expansion, they needed new items. So, Chandubhai set up a Research & Development (R&D) lab. Here, he found popular Indian food items. He then created new wafer products inspired by those recipes. For example, he took ideas from Indian chaat to make his Chaat Chaska wafers. He also made banana wafers inspired by homemade Indian banana chips.

But Balaji Wafers did not stop at wafers. Chandubhai saw that the Indian namkeen (savory snack) market was huge and growing fast. He also noticed that competitors like Lay’s focused on chips, while Haldiram’s focused on namkeen.

Chandubhai decided that Balaji would be India’s first big brand to offer both chips and namkeen under one name. Their namkeen strategy included products for many states. They offered Gujarati khakhra, Ratlami sev, Punjabi tadka, and classic sev.*

To reach younger customers, he launched Western snacks like Poprings, Nachos, and products similar to Kurkure. The names for these products, like Wheelos, Amaize, and Yumstix, were also chosen for young people. They even launched Gippi Masala Noodles to compete with Maggi and Yippee. Balaji Wafers made sure to have a product for every age and taste.

Before launching any new product, Chandubhai invited a small group of target customers to the lab. They tasted the product and gave detailed feedback. Balaji Wafers used this feedback to make their products better.

Smart Marketing and Production Strategies

Balaji Wafers knew that good products alone do not guarantee sales. Customers needed to understand what made their products special. This led to their clever marketing strategy.

They knew their biggest rival was Lay’s. Lay’s often got joked about for its small quantity and extra air in the packets. Balaji Wafers targeted this weakness with its message: “Less air, more wafers, and rich flavors.” This message made fun of Lay’s, clearly stated Balaji’s higher quantity, and also highlighted their many flavors. Their ads were fun and easy to watch, helping their message reach millions.

Balaji Wafers also found a smart way to get regular customers to try new products. They simply put a picture of a new product on the back of every packet. They asked customers to try it.

For production, Balaji Wafers kept building bigger and more advanced plants. Today, their plants automatically wash, slice, fry, season, and package potatoes.

Potatoes are the main ingredient for chips, and their prices change with seasons. This can make it hard to control costs. Also, bad weather can ruin potato crops, stopping supply. To handle this, Balaji Wafers built a cold storage facility that can hold 25,000 tons of potatoes. This lets them buy potatoes when they are cheap and store them for the entire year.

Unique Human Resources and Core Values

Balaji Wafers has a unique way of managing its people. No department is given targets. Chandubhai believes that when employees feel they own the company, they truly believe it is theirs. This makes them do their best work.

Also, every employee, from factory worker to manager, has Chandubhai’s personal phone number. This makes them feel supported and like he is always there for them. When hiring, Balaji Wafers looks more at a person’s passion and attitude than just their resume.

The success of Balaji is not just about marketing, products, or HR. It is also about their unique values. In 2023, Pepsi offered to buy Balaji Wafers for ₹4,000 crore. Chandubhai rejected the offer. He chose to keep Balaji an independent Indian brand.

When a fire broke out at Haldiram’s Noida factory, Balaji Wafers helped their competitor. For many months, they made Haldiram’s products in their own factory. Chandubhai never rushed to expand all over India at once. He expanded one state at a time. For him, quality was most important, and he always thought about the long term.

The Legacy of Balaji Wafers

Today, Balaji Wafers products are found in millions of shops across India. Their “Made in India” products are shipped to more than 25 countries worldwide. Balaji Wafers has become a snack empire with an annual revenue of ₹5,000 crore.

The most inspiring part of this story is that this entire empire began with a young boy who sold chips from a bicycle. It is a story of determination, vision, and homegrown innovation.