PE firm Advent invests $150 million for minority stake in Iscon Balaji Foods
Global private equity firm Advent International will invest $150 million for a significant minority stake in Iscon Balaji Foods (IBF) Pvt Ltd, one of India’s largest potato processors, the companies said in a statement on Tuesday.
Investment confirmed MintIt forms part of a larger $215 million round in which March newsletter and 360 ONE also participated.
Advent’s capital will help accelerate IBF’s next phase of growth in domestic and international markets, while also strengthening its operating platform and product capabilities.
The deal underscores the growing private capital appetite for India’s rapidly scaling frozen food and quick service restaurant (QSR) supply chain ecosystem. IBF operates in the $60 billion global frozen potato products market, a segment benefiting from expanding QSR chains, increased processed food consumption and export demand.
Investor logic
“IBF stands out for the rigor of its execution, the institutional maturity of its platform and its consistent, profitable growth performance across market cycles,” said Shweta Jalan, managing partner at Advent.
“India is one of the most compelling growth stories in global food processing and Iscon Balaji Foods is at the center of this opportunity,” said Sahil Dalal, managing director of the investment firm, adding that the combination of structural cost advantages, rapidly expanding export footprint and disciplined execution make this a unique partnership.
This development comes after 360 ONE previously announced a $70 million investment plan in the company, which also exports potato products.
Expansion plans
The new capital will be used towards IBF’s next phase of growth, including significant capacity expansion, deepening farmer-connected supply chains, improving processing and cold chain infrastructure, launching new value-added product lines and expanding into additional international markets, the company said at the time.
Founded in 2012, Gujarat-based IBF manufactures a wide range of frozen potato products, including french fries, french fries, coated fries and other specialty products. By combining large-scale farming networks, modern, automated processing infrastructure and stringent food safety and quality assurance systems, the company has established itself as one of the highest quality producers of processed frozen potato products worldwide.
Over the years, IBF has expanded its international customer base while maintaining a strong focus on profitable and disciplined growth. The company supplies quick service restaurants and food service distributors in India, South and Far East Asia, West Asia and Australia.
“We have spent years building IBF into a business that can compete on the global stage – investing in the right systems, talent and capital discipline, because we believe that is what it takes to win in this category,” said CEO Neel Kotak, adding that the company will leverage Advent’s global network and operational expertise to scale further.
The business is in the process of significantly increasing its processing capacity with a new manufacturing facility in Gujarat over the next 6 months, positioning IBF to further strengthen its presence in global markets, the company said in a statement.
competitive environment
The global market for exported processed frozen potato products has grown steadily in recent years, but long-term success in the category remains largely dependent on execution rigor, supply chain reliability, product quality consistency and prudent capital allocation.
IBF competes directly with McCain Foods, Hyfun Foods and Siddhi Vinayak Agri Processing in the processing sector. Others include Bikaji Foods, Haldiram’s and Balaji Wafers, according to online reports. Some of these companies have also raised or are in the process of raising capital from private equity investors.
IBF has reported operating income so far in FY25: ₹compared to 1,488.9 crore ₹1,186.06 crore a year ago. Net profit decreased ₹165.23 crore onwards ₹263.37 crore in FY24.
