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After the Maggi debacle, Nepalese noodle brand Wai Wai is planning to expand its food portfolio through acquisitions in India, Africa and Eastern Europe.
The ₹1,000 crore noodle brand intends entering the ready-to-eat segment by buying out food companies across these countries in a bid to add to its Wai Wai noodles portfolio.
Pasta, snacks“We can afford to buy food companies since we have the financial strength and are debt-free. The market for noodles has not stabilised as yet after the Maggi issue and we could look at entering categories like pasta and snacks in the ready-to-eat segment which has synergies with our existing portfolio,’’ said GP Sah, CEO, CG Foods, the makers of Wai Wai.
Market share 20%Maintaining a 20 per cent share in the Indian market, Wai Wai, however, claims that its own brand has been not impacted. “We have our set of loyal customers in India and we have maintained our market share at 20 per cent reaching out to 15 lakh outlets,’’ added Sah.
While Indian FMCG companies like Dabur and Marico have set up manufacturing in Nepal, CG Foods has also taken the initiative to set up manufacturing in India since 2006 with six plants across the country. “We entered manufacturing in India at a time when there was political upheaval in our country. But, Indian companies are setting up base in Nepal now due to tax advantages and ease of doing business,’’ he said.
In fact, in Nepal, Wai Wai continues to be among the largest food brands overtaking some of the big MNCs in its own country.
Ahead of biggies‘“We are much ahead of PepsiCo, Coca Cola and Lux in Nepal. In fact, we will leverage our large turnover when we make our future acquisitions since we want to have more brands in our portfolio.’’ Wai Wai is the dominant noodle brand with a market share in excess of 50 per cent in Nepal.
India continues to be largest market for Wai Wai outside Nepal followed by countries in West Asia like Qatar and Muscat. The ₹1,200 crore CG Foods is a part of CG Corp, a diversified conglomerate based in Kathmandu.
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