Binod Chaudhary, the Nepalese billionaire known for making his fortune selling instant noodles, is seeking to list his conglomerate Chaudhary Group’s India food unit by 2026.
CG India Gearing Up for IPO Amidst Food Industry Boom
Known for its Wai Wai brand of noodles that rivals market leader Maggi from Nestle Ltd. and ITC Ltd.’s Yippee, this Gurgaon-based firm is planning to go for a sizeable listing over the course of next 2 years after rolling out new products and acquiring smaller firms in the noodle-related industry.
With an annual revenue of 8 billion rupees ($96.2 million), the company has a 28% share in the local instant noodles market. The plans of its listing are still in the early stages of discussion, he added. The company aims to grow its revenue by 15% this year.
This group’s IPO plans come amidst a rush in foodmakers to go for IPO. Some of the other notable companies that have gone public last year include the likes of packaged food products maker Gopal Snacks Ltd. and animal protein maker Mukka Proteins Ltd.
As per the data compiled by Bloomberg News show, this sector has seen the second-highest number of IPOs in India in the past 12 months.
This mini-IPO boom of Indian companies can be attributed to the fact that India has relative political stability and also enjoys now the status of the fastest-growing major economy amid the slowing pace of expansion in China.
Planning to first bolster the market share and product portfolio, the company is not in a rush to go for IPO.
Manvendra Shukla, Global CEO of the company said that the company is looking to buy smaller companies that make seasonings, dips or ketchups.
Nepal’s Wai Wai to India’s Third Largest Noodle Brand
Wai wai, which was launched by the group in Nepal’s Kathmandu nearly 40 years ago, has since grown to become India’s third largest brand.
Known for its pre-seasoned noodle, the noodles come with a layer of spice in addition to the seasoning pouches in the packet — which means it can also be munched on as a snack without cooking it.
Shukla said that “We have something which is not replicated yet in the market”.
With Nepal and India contributing over 80% to the group’s food sales, CG Foods has 7 plants across India.
As the volumes continue to grow in India, the group expects to add more production lines.
Speaking of the product launches, the company launched 2 flavours last month, including a spicier variant called Dynamite, inspired by the Korean cuisine.
There are other products too in the pipeline and these include healthier noodle options as well. Shukla said that “It is a flavour battle”.
