Kathmandu. The business of YY noodles, which makes CG Corp Global (CG Group) global, has started shrinking in the domestic market. Waiwaichau has started losing its dominance for almost 41 years in the market of ready-made noodles due to the different strategies of the competitors and the production according to the kingship of the consumer.
According to a statement issued by credit rating agency ICRA Nepal, YY Noodles is facing stiff competition from both domestic and foreign brands in the domestic market.
Current noodles produced by Yashoda Foods, 2 PM noodles from Asian Thai Foods have become a part of consumers’ kitchens and daily snacks as the demand for expensive but tasty noodles has increased in the domestic market. Apart from this, fans of white noodles like to consume rara noodles from the beginning. As a result, there is a tough challenge to save the market for Waiwai noodles.
CG Foods, which produces YY noodles, accounted for 76 per cent of its revenue in the first six months of the current fiscal year. Cg Foods’ overall revenue has been negatively impacted due to declining market demand for Waiwai noodles, which accounts for such a large share.
ICRA Nepal attributes the decline in CG Foods’ revenue to the products of competitors who are becoming popular among consumers in the market.
In the last financial year 2023-24, CG Foods’ revenue fell by 11%. And in the first nine months of the current financial year, it has shrunk by another 6%. The operating income of the company was more than Rs 9.11 billion in the fiscal year 2022/23. It has come down to Rs 8.10 billion. In the first six months of the current fiscal year, the company has done business worth Rs 5.71 billion.
Yashoda Foods, which produces current noodles, continues to grow, even though waiwai noodles are lagging behind the choice of consumers. According to CARE Ratings, its operating income is fiscal year 2080. It had increased by 18.45% to Rs 5.87 billion in 2017-19. In the first eight months of the current fiscal year alone, the company has done business worth Rs 5.02 billion.
GP Shah, who has established Waiwai Noodles as a popular brand in the world, is now leading Yasoda Foods. Shah stressed on export and marketing of Yashoda Foods products abroad to make Current Noodles a global brand.
Yashoda Foods rs. Cg cheese balls, which are available at cheaper prices in the cheese balls market, have been selected by bringing cheese balls worth Rs 60 in the market. It has adopted a strategy to capture the market by packing expensive prices, even if it takes risks.
CG Foods has added the production of piro and spicy noodles, which has been experiencing a shock of current due to the declining demand in the market due to the growing popularity of current noodles. It remains to be seen how much market share the new product can capture, ICRA Nepal said in a press release.
Action when reminders on quality:
Kathmandu Metropolitan City (KMC) had imposed a fine of Rs 200,000 on CG Foods for selling substandard noodles. The Metropolitan City had imposed a fine of Rs 200,000 on April 1, 2081 after it was found to be substandard in a laboratory test of noodles seized from a grocery shop in Ward No. 6, Saraswatinagar.
Although the Metropolitan City had decided to take action against CG Foods on the basis of the test report received from the laboratory, CG Foods had claimed that the action of the metropolis was baseless.
