The Gurgaon-based company famous for its Wai Wai noodle brand, which competes with popular brands like Maggi and Yippee, is gearing up for a significant stock market debut in the next couple of years.
The CEO of CG Foods India Pvt., Manvendra Shukla, mentioned in an interview that they plan to launch new products, acquire smaller companies in the noodle industry, and then go public. However, he didn’t provide any further information at this time.
The company is currently in the early stages of discussing plans to go public. It holds a 28% share in the local instant noodles market and earns an annual revenue of 8 billion rupees ($96.2 million). Their goal for this year is to increase their revenue by 15%.
Recently, CG Foods India has announced its plans to go public with an initial public offering (IPO), joining a wave of food companies entering the stock market, such as packaged food products maker Gopal Snacks Ltd. and animal protein maker Mukka Proteins Ltd. In the last year, India has seen a significant increase in IPOs in the food sector, ranking second highest in the country according to data from Bloomberg News. This surge in IPO activity is driven by investors who are drawn to India’s stable political environment and its position as the fastest-growing major economy, especially as China’s growth has been slowing down.
The noodle maker is in no hurry to go public on the stock market. Instead, it wants to focus on expanding its market presence and range of products. The company is also considering acquiring smaller businesses that produce seasonings, sauces, or condiments, according to Shukla.
About forty years ago, the Chaudhary Group introduced Wai Wai noodles in Kathmandu, Nepal. Since then, it has become the third largest noodle brand in India. Wai Wai noodles stand out because they come pre-seasoned with spices, making them a tasty snack that can be enjoyed without cooking.
“Shukla mentioned that they have something unique that hasn’t been copied or duplicated in the market yet.”
CG Foods India has seven manufacturing facilities spread across India, with Nepal and India being the main contributors to the company’s food sales. The company is planning to expand its production capacity in response to the increasing demand in India, where sales of snacks and soft drinks have grown significantly over the last ten years to over $30 billion.
Recently, the company introduced two new flavors, one of which is a spicier option called Dynamite, influenced by Korean cuisine. More new products, such as healthier noodle choices, are also in the works, as mentioned by Shukla, a company representative.