National
CG Foods introduces WAI WAI noodles;
plans to set up facilities
CG Foods India, a subsidiary of
the US$ 300-million
Cinnovation Group of US,
recently launched its WAI WAI
noodles brand in the country
and disclosed plans to set up
two manufacturing facilities for
the product in Sikkim and
Uttaranchal. Each of these
facilities would span across five to six acres and have a
production capacity of nearly 10,000 million tonnes. In
addition to noodles, these units would also manufacture
snack foods such as potato chips and cheese balls in the
later stages of production.
With regard to the WAI WAI brand of noodles, the
product would be available in two variants viz., WAI WAI
brown that would be priced at Rs 10 for a 75 gm pack and
WAI WAI white, which would be priced at Rs 11 for a 100 gm
pack. Further, the company hopes to have an initial network
of 1,000 distributors and target 200,000 retail outlets in the
country. With a set advertising budget of Rs 6 crore for the
first year, Cinnovation Group would promote the brand
through electronic and print media and outdoor activities.
The Group has also entered into a technical collaboration
with the Chaudhary Group of Nepal, who has already been
exporting noodles to the North East of India.
ITC Foods plans to set up
manufacturing units
ITC Foods has revealed plans to set up
manufacturing units for its products,
which it had been outsourcing for so long.
The company has stated that to begin
with, it would establish a manufacturing
facility for biscuits and confectioneries.
Ravi Naware, Divisional Chief Executive,
ITC Foods Division, confirmed that the
company is presently evaluating 3-4
locations and the first plant is likely to be
set up in 12 months' time. Further, he said
that in three years' time, the company
would have 4-5 facilities in the country
across the different segments that ITC
Foods operates in. From the investment
point of view, it is expected that a single
facility could cost above Rs 50 crore (Rs
500 million) thereby making the company
invest nearly Rs 200-250 crore (Rs 2-2.5
billion) in these new facilities.
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