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.

The investment confirms Mint’s March newsbreak and forms part of a larger $215 million round that also saw participation from 360 ONE.

Advent’s capital will help accelerate IBF’s next phase of growth across domestic and international markets, while strengthening its operating platform and product capabilities.

The deal underscores rising private equity appetite for India’s fast-scaling frozen foods 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, rising processed food consumption and export demand.

Investor rationale

“IBF stands apart for the rigour of its execution, the institutional maturity of its platform, and a track record of consistent, profitable growth 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 sits at the heart of that opportunity,” the investment firm’s managing director Sahil Dalal, said, adding that the combination of structural cost advantages, a rapidly expanding export footprint and disciplined execution, makes this a distinctive partnership.

The development follows 360 ONE’s earlier announcement of a $70 million investment plan in the company, that also exports potato products.

Expansion plans

The fresh capital will be used towards IBF’s next phase of growth, including significant capacity expansion, deepening of farmer-linked supply chains, upgrading processing and cold-chain infrastructure, launch of new value-added product lines, and expansion into additional international markets, the company said at the time.

Founded in 2012, Gujarat-based IBF manufactures a broad range of frozen potato products, including french fries, hash browns, coated fries, and other specialty products. The company has established itself as one of the highest quality producers of processed frozen potato products globally, combining large-scale farming networks, modern, automated processing infrastructure, and rigorous food safety and quality assurance systems.

Over the years, IBF has expanded its international customer base while maintaining a strong focus on profitable and disciplined growth. The company supplies to quick-service restaurants and food-service distributors across 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 increasing its processing capacity significantly over the next 6 months with a new manufacturing facility in Gujarat, positioning IBF to further strengthen its presence across global markets, the company said in the statement.

Competitive landscape

In recent years, the global market for exported processed frozen potato products has grown steadily, although long-term success in the category continues to depend heavily on execution rigor, supply-chain reliability, product quality consistency and prudent capital allocation.

IBF directly competes with McCain Foods, Hyfun Foods, and Siddhi Vinayak Agri Processing in the processing sector. Others include Bikaji Foods, Haldiram's, and Balaji Wafers, as per online reports. Some of these companies have also raised or are in the process of raising capital from private equity investors.

In FY25, IBF reported an operating income of ₹1,488.9 crore as compared to ₹1,186.06 crore, a year earlier. Its net profit narrowed to ₹165.23 crore from ₹263.37 crore in FY24.

Avendus was the exclusive financial advisor to Iscon Balaji on this transaction.