New Delhi, Sept. 11 -- Singapore-based sovereign wealth fund Temasek will invest in Gujarat-based chips maker Balaji Wafers, Mint reported Wednesday. This is the latest in a series of moves by large foreign funds and strategic investors into Indian packaged food companies. What's the draw? Mint explains.

Balaji Wafers, a major competitor to Pepsico's Lay's, is attracting Temasek's attention for its strong market presence. In March, Temasek bought a 10% stake in iconic namkeens and snacks brand Haldiram's alongside global investment firm Alpha Wave Global, which also took a small stake.

The fund had earlier invested $180 million in cloud-kitchens and quick-service restaurant operator Rebel Foods.

Investor interest is rising across the b...