BENGALURU: Popular instant noodles, Wai Wai maker CG Foods said that it is hoping to clock `100 crore revenue from South India markets by 2022. The focus on the southern regions of the country stems from the fact that South and Western India now account for 20 per cent of the total noodles market. Karnataka alone has 5 per cent market share when it comes to this segment in the country.
Wai Wai said that it is ramping up the business aggressively and strategically in Karnataka to increase their existing market share of 12 per cent. According to the World Instant Noodles Association, India is the fourth-largest instant noodles market globally and accounted for 5.4 billion servings in 2017. Despite the stricter regulations in place, the instant noodles market valued at `93.66 billion in 2017 and is expected to expand at a compound annual growth rate (CAGR) of 5.6 per cent during 2018-2023.
“We are excited and my teams are geared up to ramp up business in both Southern and Western markets of India. Recording the highest sales from Southern India last month is an impetus to us to continue our South India growth story. We understand the pulse of our consumer preferences in Karnataka and hope that the new products/flavours that we are going to introduce is loved by them,” said Parvez R Vandrewala, zonal sales head- South and West, CG Food, the FMCG vertical of Nepalese conglomerate CG Corp Global.
Along with factories in its foothold North East India market (in Sikkim, Guwahati, Silchar), CG has also set up units in Rudrapur (Uttarakhand), Chittoor (Andhra Pradesh) and Purnea (Bihar). It recently expanded its Silchar production line and set up a new factory in Rajasthan.
Wai Wai said that as a part of its plan to revive the business strategy, it would increase sampling and distribution networks, exploring expansion of products in sync with localised regional preferences and ramping up their sales force. The Wai Wai manufacturing plant based in Chittoor that caters to the South market is running at 95 per cent capacity to cater to the growing demands, it said.