NISSIN FOOD PRODUCTS CO. INDO NISSIN FOOD LTD.
Company Background The company manufactures noodles and a variety of home foods.Top Ramen is the major brand Nissin Food Products Co., Ltd. was established of the company in India with approximately 20 in 1948.The company has about 25 production percent market share in the instant noodle market. facilities in eight countries, which supply to markets Indo Nissin uses the technology of its parent around the world. Nissin Foods was founded company for manufacturing its products.The in 1958 by Mr Momofuko Ando who till date heads company’s production facilities are located near the company as its Chairman. Delhi and in Bangalore.
The company has been continuously innovating The company had net sales of US$ 8.61 million for new products. It was the first company to launch year ending December 2005. It registered a healthy instant noodles in 1958 and cup noodles in 1971. growth in net sales for the period 2002-2005 with Nissin has been the market leader in cup noodles a CAGR of 31 percent. and has served over 10 billion servings.The net sales of the company in year ending March 2005 were US$ 2.95 billion. Net Sales for Indo Nissin (US$ million): 2002-2005
Nissin has always been committed to quality. 10 8.61 All the 35 manufacturing locations of the company 8 6.70 7.05 have been certified under ISO 9001 certification. 6 5.02 In 2005, it got ISO 14001 certification for 4
environmental management systems for its 2
16 manufacturing locations. Net Sales (US$ million) 0 2002 2003 2004 2005
Indo Nissin Foods Ltd. Source: ISI Emerging Markets
Nissin Food entered India in 1988 through a joint Factors for Success venture with Brooke Bond India Ltd. (Brooke Bond later merged with HLL) to form Indo Nissin Foods Early entry in ready-to-eat food market Ltd. However, the agreement broke off between Indo Nissin was one of the early players in the the two parties in 1998 and HLL pulled out its Indian ready-to-eat food market. It has been stake from the company. HLL also gave up the offering instant noodle cups since 1991.This distribution of Indo Nissin products.The company helped the company to take an initial lead over then decided to distribute the products through its competitors. Marico Industries. 32 Targeting specific consumer base Indo Nissin foods have always been innovative in terms of new product development. It has launched new innovative products in India to cater to a specific user segment.The company promoted noodles as a healthy product with vitamins and calcium being added to them. In order to target the younger segment, it launched new cup noodles.
Adapting products to local taste Indo Nissin Foods has a unique capability of quickly adapting its product to the tastes of the local people. It has put special emphasis on studying the local tastes, culinary traditions and eating habits of the country in which it operates.This strategy has tremendously helped in increasing sales in the countries of operation.The company has been very particular in terms of choice of ingredients, quality and price.
Future Plans
With the current economic growth of India, there will be a rise in income of the middle class and its spending power will increase.This will also lead to an increase in demand for processed foods, such as instant noodles. Indo Nissin Foods Ltd. wants to tap a larger share of this potential market.
The company is also looking to reduce prices of some products to make them more attractive to customers. It plans to further align its sales network with its marketing partner Marico Ltd. The other initiatives of the company include expanding sales by launching new products, conducting promotional campaigns, and achieving cost reductions by restructuring the production system.
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