Market share in local noodles
The firm, holding a 28% market share in local instant noodles and earning 8 billion rupees ($96.2 million) annually, is in initial listing discussions. It targets a 15% revenue increase this year.
Nepalese billionaire Binod Chaudhary, known for his instant noodle business, plans to list his conglomerate Chaudhary Group’s India food unit by 2026.
The Gurgaon-based company, famed for its Wai Wai noodle brand competing with Maggi from Nestle Ltd. and ITC Ltd.’s Yippee, aims for a significant listing within two years. Manvendra Shukla, global CEO at CG Foods India Pvt., disclosed this plan, withholding further information.
He mentioned that discussions for listing the firm, which holds a 28% market share in local instant noodles with an annual revenue of 8 billion rupees ($96.2 million), are in early stages. It targets a 15% revenue growth this year. CG Foods India’s IPO plans align with a surge in public offerings among foodmakers like Gopal Snacks Ltd. and Mukka Proteins Ltd. The sector witnessed the second-highest count of IPOs in India in the last 12 months, as per Bloomberg News data.
Investors are driving the mini-IPO boom, drawn to India’s comparative political stability and its position as the fastest-growing major economy amidst China’s slowing expansion.
However, the noodle maker isn’t in a hurry to go public and aims to enhance its market share and product range initially. Shukla mentioned the company is also considering acquiring smaller firms producing seasonings, dips, or ketchups.
Unable to be replicated
Chaudhary Group initiated the Wai Wai noodle venture in Kathmandu, Nepal’s capital, four decades back, and it has evolved into India’s third-largest brand since then. Wai Wai, recognized for its pre-seasoned feature with a layer of spice, can be enjoyed as a snack sans cooking. Shukla mentioned, “We offer a unique product yet to be replicated in the market.” CG Foods India presently operates seven plants nationwide, with Nepal and India contributing over 80% to the group’s food sales. With Indian snack and soft drink sales surpassing $30 billion over the past decade, the firm anticipates expanding production lines in India as volumes rise. Last month, it introduced two new flavors, including a spicier variant named Dynamite, inspired by Korean cuisine. Shukla indicated plans for more products in the pipeline, including healthier noodle options, stating, “It’s a battle of flavors.”
You might also be interested in: Trump media company sees a surge in shares as it makes its debut on Wall Street
