CG Foods to invest in Sikkim

CG Foods to invest Rs 100 cr in next 3 yrs

source:India Blooms News Service


New Delhi/Kolkata, Jan 11 (IBNS) CG Foods, a leading Noodles & Snacks Company in Eastern India, set up by Singapore-based Cinnovation Group, on Tuesday 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 said it 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.

Speaking at the occasion, Nirvana Chaudhaury, Managing Director, said, “We have 70% market share in North East, Sikkim and west Bengal combined. Pan India, we estimate ourmarket share to be around 14-15% in the 1200 crore noodle market. We are targeting a market share of 25% by 2014.”

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.

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