L-R: GP Sah, CEO, CG Foods and Nirvana Chaudhary, MD, Chaudhary Group with the entire portfolio of Wai Wai products

Mumbai: CG Foods, one of the leading Noodles & Snacks Company in Eastern India, set up by Singapore-based Cinnovation Group, today announced an investment of INR 100 crores approx. in its core selection of noodles and snacks, over the next three years to underline the company’s strong commitment to the country. The company will continue to invest in brands and distribution capabilities while accelerating investment in capacities to provide consumers a wide product range, from popularly positioned product- Wai Wai noodles. In addition to investment in its core food product sector, company is on look out for acquisition opportunity in FMCG space for inorganic growth and strengthening distribution of the current businesses primarily in South and west market.

CG Foods is expanding its facility by setting up a State-of-the-art manufacturing unit in Rudrapur in addition to its already two functional manufacturing plants in Assam & Sikkim with a combined capacity of 270 million packs. The new facility opening is aimed at bolstering further growth in one of the world’s largest and fastest growing food and beverage markets. Current plans foresee a further acceleration in 2011 and beyond, foraying into the Western part of the country and capacity expansion in Assam. Spread over an area of 3 acres, the new plant will have a production capacity of 120 million packs, thus accelerating the production of its star product WAI WAI to new high. With an initial investment of Rs 20 crores, the Rudrapur facility will add a new dimension to the growth strategy of CG foods in North India. The new investment is expected to directly generate approx 500 new jobs in and around the manufacturing plant’s operation. Sikkim and Assam’s unit employ about 1500 people in India. Consumers in North India will now be able to consume array of locally-produced CG foods products- WAI WAI, MIMI and WAI WAI Xpress.

Speaking at the occasion, Nirvana Chaudhary, Managing Director, said, “CG foods market leadership in East India has been an undisputed so far. Leveraging that encouraging association, and India’s positive economic environment, provides excellent business opportunities for us here. Our investment of 100 crores in Indian market represents CG foods’ strong commitment towards India and towards building capacity of the Indian community. The investment also underlines our endeavour to lead India into becoming one of the strategic growth markets for Cinnovation I CG. We will, therefore, continue to invest in brands and distribution capabilities while accelerating investment in capacities to provide consumers a wide portfolio of products.”

According to GP Sah, CEO, CG Foods, “The opening of this world class manufacturing unit in Rudrapur reiterates our commitment to provide high-quality food & snacks products to our consumers in India. By opening the new facility in Rudrapur, we will be able to increase our geographic presence, enhance our competitive edge in India and support local community development by sponsoring jobs and local procurements.”

The company has recently rolled out two new exotic flavours under brand Wai Wai Quick in India- Wai Wai Quick Chicken Pizza and Wai Wai Quick Masala Curry. Targeted at the on-the-more youth, Wai Wai Quick Masala Curry and Chicken Pizza have been affordably priced at Rs.10/- for 75 gm with three seasoning, a unique feature of Wai Wai range of Noodles. CG Foods has a turn-over of INR 150 crores in India and a global turn-over of INR 350 crores. The company plans to grow to Rs 1000 crores in next three years. Nirvana Chaudhary adds, “We have 70% market share in North East, Sikkim and west Bengal combined. Pan India, we estimate our market share to be around 14-15% in the 1200 crore noodle market. We are targeting a market share of 25% by 2014.”