Nepal-based fast-moving consumer goods (FMCG) conglomerate CG group, which sells Wai Wai instant noodles in India, is targeting a turnover of Rs 1,500 crore in the country by 2022. The company is expecting to close the current financial year with a revenue of Rs 820 crore in the India region.
To further fuel its growth, the group is looking at expanding deeper into the markets in South and West India, and has set up a new plant in Rajasthan towards this end. The plant, its seventh in the country, has been set up with an investment of Rs 25 crore.
“We have significant presence in North India with 60 per cent market share in the Northeast region. But we have limited visibility in southern and western markets with huge scope for expansion,” said Parvez R Vandrewala, sales head for South and West India, CG Foods.
Of the six other plants it has in India, three are in Northeastern states, one each in Uttarakhand, Bihar and Andhra Pradesh. These plants have 10 manufacturing lines that are running at a capacity of 95 per cent. CG group is targeting Rs 100 crore of revenue from the southern region by 2022 from the current Rs 40 crore.
The group, which entered India three decades ago via the Northeast, is also planning to diversify into other segments like ketchups and snacks such as cheese balls and bhujia. “We are also planning to launch several other flavours in India that are present in other international markets, such as shrimp and duck flavours,” said Vandrewala.
The instant noodles market in India is expected to grow at a compound annual growth rate of 5.6 per cent till 2023. In this segment, Wai Wai competes with Nestlé’s Maggi and ITC Sunfeast’s Yippee, and it has a market share of around 17 per cent, the third biggest share. However, Wai Wai is the only product that can be eaten directly from the packet without cooking.HHH