Wai Wai instant noodles, the flagship brand of Chaudhary Group of Nepal, has been officially launched in India. The Chaudhary Group of Nepal has tied up with CG Foods India Pvt Ltd to market and distribute the product in India.
CG Foods India is a subsidiary of the $300 million Cinnovation Group, which has a technical collaboration with Chaudhary Group of Nepal, having a turnover of $250 million.
CG Foods India is setting up two manufacturing units in Sikkim and Uttaranchal at an investment of around Rs 40 crore to manufacture Wai Wai and other snack foods like potato chips and cheese balls in technical collaboration with the Chaudhary Group. An additional Rs 10 crore will be spent on marketing and promotional activities.
On the company’s entry into the Indian instant noodle market, Nirvana Chaudhary, Director, Chaudhary Group, said, “Our decision to enter India was driven by two factors: firstly, our ability to offer value-added instant noodles to consumers, which can be eaten straight out of the pack or cooked even as a soup, expanding the choice set of instant noodles available. Secondly, the category offers a tremendous growth opportunity as processed food accounts for 53 per cent of the total food consumption in the country.”
He added, “We aim to reach the Rs 300-crore mark in the next three years.” At present, the company helds a 15 per cent market share, and with this launch, it aimed to raise its market share to 35 per cent, Chaudhary added.
The instant noodle market in India is estimated to be 40,000 tonnes and is valued at Rs. 400 crore. This market is driven by taste, convenience, affordability and availability.
T K Gupta, CEO, CG Foods India Pvt Ltd said, “Wai Wai noodles will target the in-home consumption category. The noodles will be marketed using both above-the-line advertising as well as a complete below-the-line programme that will ensure extensive consumer sampling and market demonstrations.”
The company has earmarked an advertising budget of Rs 6 crore, which will include electronic, outdoor and print media to create visibility and awareness for Wai Wai noodles in India. The company is working with Mudra for the Bengal and North-East markets. Chaudhary said that more Indian ads targeting the North would also be made.
Wai Wai noodles will be available in two variants – Wai Wai Brown (Veg and Non-Veg) priced at Rs 10, Wai Wai White (Veg and Non-veg) priced at Rs 11. The Group also plans to target 200,000 retail outlets across India to gain a competitive edge by being efficient in the supply of their products to consumers and improve profitability.