PREFACE

The basic aim of undergoing training is to acquire practical knowledge of the market. As a management student, it was a pleasure to undergo practical training at the Balaji Wafers Private Limited, Vajdi and submit a report on the same to our college, Som Lalit.Institute of Business Management.

The basic aim of undergoing this training program was to evaluate my ability to apply & put into practice the marketing concepts that I have studied so far. This report is based on the Market Survey of dealer and Retailers relationship at Gondal City for Balaji Wafers Private Limited, Vajdi.

The company wants to know the satisfaction level of retailers and trying to maintain their market share in the Gujarat and they are trying to increase their share in the national market of wafer and namkeen industry.

The present FMCG industry is highly influenced by snack food industry. Snack food industry have 25% of growth out of it wafers and namkeen play a vital role and Balaji wafers pvt. Ltd. enjoy highest market share of wafers and namkeen in Gujarat.

With a view to evaluate & study, the market research and potential of the Retailers and to know the preferences of consumers, a survey was conducted in the town of GONDAL to find out the relationship between dealer and retailers.

Survey is conducted for the retailers of Balaji wafers for knowing the services of Balaji.. So project was mainly focused to know the exact market situation of the product and knowing the service level which is provided by the Balaji to their retailers. The town of Gondal is quite a lucrative market for snack food because, the people of the town are highly taste conscious & are always ready to try out new varieties of food products and food-items

The main objective of conducting this survey was to find out relationship of dealer and retailers. And to know the expectations of services from the retailers & to know who are the major competitors in the market of wafers and namkeens.

We undertook a survey of Retailers at various areas or gondal. One questionnaire is prepared for taking the views of retailers. Sample size was taken to be 100 for Retailers.

1.1 OBJECTIVE:-

The main objective of the project is to find out the relationship between retailers and dealers of corresponding areas.Other objectives of the marketing research project are as follows: To study current scenario of wafer market To get practical knowledge of market. To find out Awareness of the products To Find out the services provided by dealers. To know about Timely delivery of goods by dealers. To knowing the satisfaction level of the retailers. Finding the scope of new product.

1.2 RESEARCH DESIGN

This Research is more related to descriptive type because the retailers knowledge, beliefs, and satisfaction of services can be judge through this type of research. Descriptive study may be necessary in other cases when a descriptive study could be taken up are, when researcher is interested in knowing the proportion of the people in a given population who have behaved in a particular manner, making projections of a certain thing, or more variables.

3 METHODS OF DATA COLLECTION

The data has collected in two ways. 1. Primary data2. Secondary data

Primary data: -Primary data is to be collected to know the retailers , preferences and belief. Primary data are those, which are collected for the first time, and they are original in character. A suitable combination of Questionnaire techniques, Personal interviews & discussions with the respondents are used to collect the required Primary data. Findings of the primary data focus on the retailers of the Balaji Wafers. Primary data gives higher accuracy and facts, which is very helpful for any research and its findings.

Data is to be collected through primary research conducted in the town of Gondal in the areas where the services are perceived to be poor or questionable. The survey was conducted in places like General stores, Grocery shops, Pan shops, Provision stores, Dairy farms etc. A questionnaire of 19 questions will be used to gather their opinion.

Secondary data: -The secondary data are those, which are already collected by someone for some purpose and are available for the present study. Secondary data are to be collected from the magazines, websites and other such sources.

1.4 SAMPLING DESIGN

Sample plan: -

Sample Size: -

No particular statistical technique was used to determine sample size for the survey research. Large samples give more reliable result than small samples so it was decided to collect the information of 100 respondents.Retailers: 100

1.5 Sampling procedure: -

For Survey of the Retailers the responses had recorded by giving the questionnaires to them and provide them all the information about the purpose so that they can give true information.

Types of Sampling: -

In this study of retailers, the sample size is 100 and the type of sampling is quota sampling because out of 100 retailers it was distributed like that each retail shops are taken who are selling the products of Balaji into equal proportion which is given below:

1) Pan Corners2) General and Provision Stores3) Dairy Farms4) Tea Stoles5) Grocery Stores6) Restaurants and Ice-cream Parlor

1.6 TOOLS AND TECHNIQUES OF DATA COLLECTION

Questionnaire method:-

For the Descriptive types of research the tools for collecting data from the samples is questionnaire method. Questionnaire includes both closed-ended as well as open-ended questions. The Wafers and Namkeen retailers questionnaire includes 19 questions.

Observation method: -

Some data are not getting directly from the respondents so we have to use the observation method. For this research the observation method is also used to collect the information.

1.7 Limitations of the study

I. The research is done only in limited area.

II. Some retailers provide biased information.

III. It is difficult to predict the satisfaction level of Retailers after getting the sample of 100 retailers because in Gondal the number of retailers, who are keeping the products of Balaji, is very large.

THE SNACK FOOD INDUSTRY 2.1 INTRODUCTION

This report briefly describes the snack food market, in particular the Potato Chips segment in India. The size of the Indian Snack food market is currently estimated at approximately US$ 375 million. The total size of the Indian snack food market is at an estimated over 400,000 tons in volume terms and Rs100bn in value terms and is growing at over 10% for the last three years (2001-2004). Unorganized small companies with a localized presence dominate the snack foods market in India but in recent years the organized branded products market size has grown significantly. Potato chips constitute the major segment among a wide range of local snacks available.

According to industry sources, the market for branded chips has been growing rapidly at approximately 20 % annually. Many major companies have signed up exclusive sourcing agreements with local farmers for procurement of various raw materials. A wide well-established distribution network, attractive packaging, and promotions targeted at children to increase consumption have been some of the main factors for increasing market share of leading players. To increase consumption and encourage first-time purchase, many players have started introducing their products in smaller pack sizes at a lower unit price.

Consumer preferences and tastes vary widely across the different regions of the country. Banana chips for instance, which are very popular in the southern part of India do not find many takers in other parts of the country. Penetration of snack foods is highest in North India as compared to other parts of the country.With Indian consumers constantly looking for variety, customers becoming increasingly health-conscious and with positive factors being attributed to packaged products, snack food companies are now increasingly emphasizing on newer snack food items and better quality packaging for their products.

2.2 PROFILE OF THE SNACK FOOD INDUSTRY OF INDIA

In the diverse market of packaged snacks, every region has its specialty and each city, its local favorite, which make for high entry barriers. Here are some facts and figures which represents the snack food industry.

Population of India1250 million

Growth of Indian market for salted snacks5.7% (By Volume)

Growth of Indian namkeen market5.9% ( By Volume)

6.3% ( By Value)

Snack foods market salesMore than Rs. 1600 crores

Potato Chips Market Revenue85% of the total market for snacks

Estimated Market Size$500 million within 2007.

Production of Potato chips in 2003-20043730 (in 000) tonnes

Exports

40 % of the Total market of food industry.

Contribution of Sev-Bhujia to industry26.4 % in the snacks market

Contribution of Banana Chips 3.1% to total branded sales of namkeen

Haldiram dominates by covering60% share in dal and bhujia market

MAJOR POTATO CHIPS MANUFACUTRE COUNTRIES FOR YEAR 2010

COUNTRYPRODUCTION ( in000) tonnes

China5878

India4430

Turkey3624

Iran3388

Bangladesh3704

Indonesia3012

Pakistan3449

3.1 INTRODUCTION OF BALAJI WAFERS PVT. LIMITED

The journey of Balaji Group is started in a year 1976 by the member of virani family. For supplying wafers and namkeens of local brands to the patrons of Astron Cinema, Rajkot. Due to the short supply of that product they decided to make their own product line in a year 1982.

By the overwhelming retail success they inspired to set a semi automatic plant. Instead of preparing wafers by the traditional frying method this semi automatic plant boosted the quality, taste and more sales also. The fame of taste reached to the whole Gujarat hence it was time to take over the whole Gujarat so the biggest automatic plant of Gujarat came into the picture.

In the initial stage Balaji Group had set up their plant at Aji Vasahat (Industrial Zone, Rajkot) with their new concept of making the potato chips. The main benefit they got is the readymade infrastructure availability due to which their cost is reduced to larger extent. They have operated over there around 20 to 22 years.

Now Balaji Group has set up their new fully automatic plant at Metoda G.I.D.C. which is in the area of the village named Vajdi(vad).

Quenching the demand of Gujarat, Maharashtra and Rajasthan region Balaji Group is now looking forward to march over India.

THE WAFER SULTANS

Chandulal Virani and his brothers came to town two decades ago to run a canteen in a cinema hall on contract, saw the immense potential for the wafers they introduced and went on to conquer the wafers market in the state.

This is the summary of the success story of Mr. Chandulal Virani and his brothers Meghjibhai, Bhikhubhai, and Kanubhai, whose Balaji Wafers has a 90% of the market share in the Gujarat State.

Chandulal Virani, now the managing director of Balaji Wafers, remembers those days when family sold roasted groundnuts, sandwiches and potato wafers to the cine-goers. Right from those days, they believed in reasonable pricing and good quality. This earned them a good turnover, though the profits were little lower.

They received feed backs from their customers about the quality of the stuff and stuck to the highest standards of quality. As the demand increased, they stopped buying wafers from outside and started making it. They sold the wafers aroud the Astron theatre also. This was the first step in setting up the business. At that time they had only two assistants who helps them in wafer production.

Chandulal opened an independent retail outlet in 1983-84 to sell wafers and sandwich which are known as Balaji Sandwich, which also has a good quality. Chandulal said is his primary concern which gets priority over taking on the multi-national brands.

They installed a semi-automatic plant in 1993-94. The plant had a capacity to produce 180 kg. of wafers a day. Without machines they were able to produce about 60 kg of wafers a day. At that time the production division was under the supervision of Chandulal Virani, while Bhikhubhai and Kanubhai looked after sales and marketing.

After conducting the research to find out how companies abroad stored the wafers fresh, they installed a modern automatic plant in 2000. The new unit has a higher capacity for production with the same quality level.

Balaji Wafers Private Limited manufactures and supplies potato chips plus a variety of mixed fried snacks called namkeens to the populace in Gujarat. The Balaji 35 grams bag of potato chips (salted or Masala) retails at mere 5 rupees. Its biggest bag is 200 grams package retailing for 20 rupees. However, it produces some 5 tons of this product per day ( approximately 19,000 tonnes per year), ranking in some US$ 15 million per year for this enterprise.

Situated in Rajkot, an hours plane ride from Mumbai, the ethnic market producer has just opened its third and latest manufacturing plant to date. According to its founding members, the factory has the largest potato chip processing line in the whole of Asia.

This family- owned enterprise, now in its 24th year of operation, has 19 products to offer the snack-hungry population of cinema-goers in Gujarat: from potato chips to banana chips and even fried chickpeas with sauted spices.

The management of the enterprise is done by family members only. Chairman - Mr. Bhikhubhai Virani Managing Director - Mr. Chandubhai ViraniTechnical Director - Mr. Kanubhai Virani R&D Director - Mr. Keyur Virani

Currently it is situated at Vad Vajdi Kalawad Road, Dist. Rajkot. The Balaji plant covers 85,000 square meter area in the Rajkot city. Its big taste revenue i.e. turnover touched to the crore rupees milestone.Balaji Group has 90% share of wafers market and 70% shares of namkeen market in Gujarat.They are inviting all to travel the past, present and the future of Balaji Group.

3.2 MISSION STATEMENT OF BALAJI GROUP

Balaji Group has mission in relation with the health of the people. The mission statement of Balaji is : To Provide healthy and hygienic food to people at an economic prices.

The above mission statement of the Balaji Group shows that they are caring for the people of the society for their health and economic conditions.

3.3 VISION STATEMENT OF BALAJI GROUP

At least one product for every occasion is a clear cut vision of Balaji Group. This vision meets the buying capacity of an average Indian and it also reflects the motto to provide best quality product line. At present company has a Lions share in Gujarat and high volumes of sales in Maharashtra and Rajasthan region. To date company get 20% growth per year and marching towards new horizon of success. Any time, any where, with Balaji Group get the fruits of their Vision.

3.4 STRATEGY OF THE BALAJI GROUP

This simple mantra rocked and changed the definition of a chip world. Winning the heart by quality and great taste and distributing sufficient dealer margin is a winning strategy of a Balaji Group.

Its Value for Money strategy enables even a kid to buy fresh and healthy food in small prices. Indeed a in a neck to neck competition era one must implement new ideas and Balaji Group has developed the Think Tank who continuously update strategy in the right direction.

3.5 ORGANIZATIONAL STRUCTURE OF BALAJI WAFERS Pvt.Ltd.

CHAIRMANMANGING DIRECTOR

TECHNICAL DIRECTOR

RESEARCH &DEVELOPMENT DIRECTOR

GENERAL MANAGER

PRODUCTIONMANAGER

MARKETINGMANAGER

FINANCE MANAGER

SUPERVISOR

AREA SALESMANAGER

CHIEF ACCOUNTANT

WORKERS

SALESEXECUTIVES

CLERK

3.6 THE PLANT

The existing plant of Balaji Wafers Private Limited is largest in capacity and with the state of art facility. In the year 2003 Balaji group took pride to introduce this biggest fully automated Potato processing machinery plant in India which can process 4500 kg of potatoes and make 1200 kg of chips per hour.

The namkeen and other product line has separate departments and it has been produced in a same quality conscious processing system. Chips and namkeens made in bacteria free and stringent hygienic standard environment. That is the big advantage of this big Balaji plant.

3.7 RESEARCH AND DEVELOPMENT

Balaji Wafers are one of the leading brands in the snack food industry of India. They have a fully automatic plant for producing wafers and other namkeen products. Balaji wafers have 19 products including the different flavors of wafers and namkeen products.

Balaji Wafers has quality and strong distribution network with lower prices. Their quality is the best in the whole industry. The main reason behind the quality level is the strong activation of the Research and Development Department to continuously improvement in the quality.

Balaji Wafers have a big laboratory for the new researches with the latest equipments for the testing the raw materials as well as the finished products.

Under the strict laboratory tests each and every batch of raw-material of each kind of products whether it is of wafers or it is of namkeen products passes and checked by the tests. After testing if the quality is upto the mark then it will go further for processing.

3.8 PRODUCTS OF BALAJI WAFERS Pvt. Ltd.

Sr.No.Product NameIngredients

1)Potato Masala WafersChoicest Potatoes, Edible Oil, Chilly Powder, Iodized Salt, Spices and Condiments

2)Potato Salted WafersChoicest Potatoes, Edible Oil and Iodized Salt

3)Tomato MastiChoicest Potatoes, Edible Oil, Chilly Powder, Iodized Salt, Sugar Spices, Condiments and Added Flavor

4)Chat ChaskaChoicest Potatoes, Edible Oil, Chilly Powder, Iodized Salt, Spices, Condiments and Added Flavor

5)Banana Mari WafersChoicest Bananas, Edible Oil, Iodized Salt and Pepper Powder

6)Banana Masala WafersChoicest Bananas, Edible Oil, Chilly Powder, Iodized Salt, Spices and Condiments

7)Farali ChevdoChoicest Potatoes, Edible Oil, Peanuts Splits, Sugar Powder, Chilly Powder, Iodized Salt, Spices and Condiments

8)Chana DalChoicest Gram Splits, Edible Oil, Chilly Powder, Iodized Salt, Spices and Condiments

9)Mung DalChoicest Kidney Bean Splits, Edible Oil, and Iodized Salt

10)Masala PeasChoicest Peas, Edible Oil, Chilly Powder, Iodized Salt, Spices and Condiments

11)Shing BhujiaPeanuts, Gram Flour, Edible Oil, Black Gram Flour, Iodized Salt, Spices and Condiments

12)Ratlami SevGram Flour, Edible Oil, Math Beans Flour, Chilly Powder, Iodized Salt, Spices and Condiments

13)Aloo SevPotato Powder, Edible Oil, Gram Flour, Starch, Chilly Powder, Mint Oil, Iodized Salt, Spices and Condiments

14)Tikha Mitha MixGram Flour, Edible Oil, Rice Flakes, Corn Flakes, Peas, Green Gram, Peanut Splits, Sugar Powder, Curry Leaves, Sesame, Coriander, Black Pepper, Cumin Seeds, Ajowan, Iodized Salt, Spices and Condiments

15)Khatta Mitha MixEdible Oil, Corn Flakes, Rice Flakes, Gram Flour, Roasted Gram Splits, Sugar Powder, Peanuts Splits, Sago, Curry Leaves, Amchur Powder, Turmeric Powder, Black Salt, Iodized Salt, Spices and Condiments

16)Masala ShingChoicest Roasted Peanuts, Chilly Powder, Spices and Iodized Salt

17)GathiyaGram Flour, Black Pepper, Edible Oil, Ajowan and Iodized Salt

18)Chataka Pataka(Tangy Tomato)Rice Meal, Edible Oil, Tomato, Corn Meal, Gram Flour, Spices and Condiments, Iodized Salt, Added Flavor

19)Chatka Pataka(Masala Masti)Rice Meal, Edible Oil, Corn Meal, Gram Flour, Spices and Condiments, Iodized Salt, Added Flavor

3.9 DISTRIBUTION NETWORK OF BALAJI

When thinking about channels of distribution arrangements one must always remember that the goals of the various firms in the channels may diverge from one another. This is natural since various members are separate firms with distinct business models.

Take, for example, a manufacturer who sells products through a retailer. While a manufacturer is devoted to its own products, a retailer (and other distribution partners like "distributors") typically sells the products of many manufacturers. A manufacturer may want to educate customers about its own product, while the retailer may not want to bear the costs (or have the expertise) to provide product education. In fact, a retailer may simply be interested in pushing the products of any manufacturer that provides the highest margin. This is not surprising because, again, the manufacturer and retailer are separate firms.

The wheel of network is devised under the ideal distribution channel network. That ensures to supply fresh product in any corner of Gujarat within 24 hours. You can have snack of Balaji in every 100 metres of area in Gujarat. At Balaji it is not just distribution but it is an euphemistic effort of team work.

3.10 DISTRIBUTION CHANNEL OF BALAJI WAFERS Pvt. Ltd.

MANUFACTURER SOLE DISTRIBUTOR (KATARIA) SALES AGENCIES DEALERS RETAILERS CUSTOMERS

Source: Balaji Wafers Pvt Ltd.

3.11 MARKET DEVELOPMENT

Apart from being easy to produce, snacks are ubiquitous. The key marketing issues here are margins and consumer preferences. The Research and Development Director Mr. Keyur Virani says Packaging is also playing a key role beyond being just a good, pilferage-proof and catchy delivery system. A look at the snack foods business shows that it is clearly targeted for ease of carrying and eating, even in the citys notoriously crowded suburban trains.

A report by A.C. Nielsen India ( Retail ), estimates that this category of food has a fair chance of growing by about 25% in the next two years, due to various reasons like Multiplex culture, snacking at home while watching T.V., pubs and bars ( where they are served free ).

For Potato Wafers, it is primarily the case of a commodity market largely turning packaged. The retail audit suggests that growth in this segment is seen largely as a reflection of consumer preference moving towards packaged goods. Besides Balaji Wafers, competitors in the local potato chips market include brands like Frito Lays peppy, Uncle Chipps, with high visibility advertising and trade promotions. Banana Chips is a sub-segment that is also fast catching on. A predominantly southern phenomenon, Banana Chips now contribute approximately 3.1% to total branded sales of namkeen, up from 2.7% in 2001, while volume contribution was 3.6% in 2002. Industry sources estimates that the market at far higher tonnage and value.

AC Nielsens retail audit shows that the large sales volumes are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good value for money perception

Further expansion plans are already in the pipeline for Balaji Wafers. Mr. Keyur Virani says, A range of snack products will be rolled out to other parts of the country in 3 to 4 years time.

3.12 COMPETITORS OF THE BALAJI WAFERS AND NAMKEEN

There are two kinds of competitors which Balaji have to kept in mind while operating in the market. For the Wafers Segment they have different competitors and for the namkeen segment they have different competitors

Competitors in the Wafers and Namkeens Segment:

Lays wafers CheetosLeher(PepsiCo)

Bingo (ITC LTD.)

Kurkure

Samrat

A-top (Ajanta Groups)

Everest wafers

Haldiram

Uncle Chips

Sushma

Musst Bite (Amul)

Munch Time

Hariom

3.13 SWOT OF THE COMPANY

The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). 1) Strengths: - Financially sound : Balaji Wafers is a family-owned enterprise. Four Brothers have started the company with 60% owners capital and 40% loan. So they have their own money in the business. So they are financially sound. Good quality at reasonable price :Balaji Wafers main strength is the best quality at the reasonable price which is affordable by the all the classes of a society. Everyone is capable of buying the best quality food at a reasonable price. Strong Channel of Distribution :Balaji is strong at their channel of distribution. They have sole distributor named KATARIA and under him they have many sales agencies who are operating the whole market at regional , national as well as international level. Within 24 hours they can supply fresh product in any corner of Guajrat. Quality of Raw Material :Balaji is importing raw material especially grains from China and Thailand. Excellent peanuts and bananas come from Gujarat and Western India and potatoes are come from the Central India.

2) Weaknesses :

Raw-Material Cost :Balaji is importing raw materials from the different areas of Gujarat and India for producing different products. The cost of importing and the price at which they are importing the raw materials is higher than what if they will purchase from the local players.

Limited production capacityBalaji wafers have only one plant located in rajkot and they have huge market share in Gujarat region i.e. 90% in wafer market and 70% in namkeen market, due to limited production Balaji is not able to expand there market in other regions of India and overseas.

Very less spending on advertisement

3) Opportunities : Balaji Wafers have an opportunity to make reach their products in some of the areas of the country where they still not reached. At the international level they are exporting only to Dubai. So they must have to increase the number of countries as their customers.

4) Threats : Giant players like PepsiCo. and ITC LTD. are present in the snacks market Balajis main threat recently is emerging of new competitors, one is A-top from Ajanta Group and the Second is Oreva from the Orpat Group. So due to new competitors who also have very strong background Balaji have to take some steps to tackle them.

3.14 INFORMATION OF EXPORTS

Balaji Wafers Private Limited is the second company who is exporting the namkeen products to the other countries. The first company who is exporting the wafers and namkeen products is Haldiram. So, it is the matter of pride for Balaji that they are also exporting the namkeens and wafers to the other countries.

Balaji has started to export their snack products last year. And they have select the first country for export is DUBAI. They are planning to export their food products to the other Asian countries and African Countries.

Balaji is uses planes for exports. At every 20 days they have fill up the lot for the planes for exports to Dubai. Within few time period they have captured a good market in the Dubai due to its quality and lower price of the products.

Balaji is exporting 10% of their total production and they want to increase their exports with having a good domestic market which can be now possible through only expanding and increasing their plant capacity.

3.15 FUTURE PLANS

Balaji Group perceive in growth rather say development to touch the sky. The company will enhance its product range by adding some futuristic and Indian traditional taste company will plan to some extruded snacks and western products to their Global Market. Recently company has acquired more space where its entire namkeen unit will be shifted.

The future plan is that company is now concentrating more on the Global Market. Now a days Balaji Wafers operating in the market of Dubai at a global level. They are now concentrating more on the other Asian countries so that they can compete at the global level with the branded companies who are already in the international market with strong market share.

Balaji is planning to introduce low fat and low calorific value snacks in market.

COMPANYS ACHIEVEMENTS

The companys food production like potato wafers, banana wafers. & other salty production are prepared in its fully automatic plant with bacteria free & stringent hygienic standers. The use of computer system ensures uniform quality & abviates the necessity for launch of human hands. The production environment is such which makes it possible to make the production less only & more ________________According to the survey conducted by Times of India, Balaji Wafers Ranks 4th in branch recognisation in India. Business standard paper dated 10th September 2003 addressed Chandubhai virani as the wafer sultan in the meet your enter rear column. BALAJI AND VIRANI

Balaji and Virani -- the combination sounds familiar. The Virani family of Balaji Telefilms soap Kyunki saas bhi kabhi bahu thi may be a household name, but heres an other Virani family from real, not reel, life that has stormed Gujarati homes. With Balaji snack foods, what else? When four Virani brothers from Rajkot (Saurashtra) Meghjibhai, Chandubhai, Bhikhubhai and Kanubhai entered the snackfoods business two decades ago, they never thought that one day they would give the MNCs a bite for their money. But today, Balaji Wafers has emerged more than a munch for Pepsis Frito Lay, with almost 70% of the states wafers market in its pocket, err, packet.

7Their very own version of the Virani family drama, starting in Saurashtras commercial club Rajkot in a dingy cinema hall canteen, has all the masala of an entrepreneurial zing. But thats where the similarity between the TV show and family business drama seems to end. The Viranis say they never quite borrowed the Virani Balaji combo from TV; if at all, it should have been the other way round. Because their Balaji saga actually started back in 1982, when Balaji Telefilms promoter Jeetendra was still known as the Jumping Jack.

Born to a farming family in the nondescript Dhundhoraji village in Jamnagar district, brothers Virani first dirtied their hands in the diamond and agriculture kits business in the mid 1970s. But the effort ended in disaster. We tried trading in diamonds and agricultural kits. But lost the entire Rs. 20, 000 capital our father gave us. Says Chandubhai, managing director of Balaji Wafers Pvt. Ltd, and a class X passout.Chandubhai and his brother Meghjibhai next took up jobs in Rajkots Astron Cinema selling refreshments. I earned Rest. 100 per month while my brother took home Rs. 155, he recalls.

Later, when the cinema owner Govindbhai handed over the canteen to them on contract basis in 1976, Chandubhai introduced sandwiches, with a little help from the dadies of his household who supplied him with exotic home made masala. The sandwiches soon went on to prove an instant hit in the Saurashtra region. Even, the Viranies continue selling their sandwiches, though they rake in less than a fraction of their turnover.

Noticing early on that potato wafers constituted 80% of the refreshment sale, the brothers decided to turn that into their core business. Thats when Balaji was born. We even managed to get a specialist cook, but he turned out to be a shirker. So, often, I had to slice potatoes and fry them myself, Says Chandubhai, strongly advocating a do-it-yourself attitude towards business. 8

The demand for wafers was tremendous and the supply limited, given the distribution constraints in those days. Companies located in Mumbai could not meet the local demand, so we decided to pitch in and make good of the supply gap, says Chandubhai, turning nostalgic at thought of how, 23 years ago, he had purchased 60 kg potatoes to make 15 kg of wafers.

Today, with gradual automation that began in 1993 Balaji has the capacity to produce 1200 kg wafers per hour. The viranies even took a Rs. 15 Crore loan from corporation bank to mechanize production. The technology was sourced from the U.S. and U.K and Germany to help improve quality.

It market estimates are to be believed, Viranies have build Rs. 150 Crore business out of potato wafers. Of course the brothers themselves refused to reveal the size of their profit and sales. However market estimates, says that it could be around 125 Crore.

All that they say, instead, is that in the first ten years, 1982 to 1992 while the business grew the revenues were small. So even as the family sifted to a 750 sq. yard house in the city, family members continued to do most of the processing including procuring potatoes, cleaning them, frying them and even packaging them. From going about distributing the product on a moped, they bought a rickshaw two years latter. A tempo was subsequently added with a Rs. 1.8 lakh loan form a bank.