The deal marks Mitsubishi\'s foray into consumer-facing business in India. So far it has been largely into largely into automobiles and trading in the country.
Mitsubishi Corporation has picked up 34 per cent stake in Indo Nissin Foods, maker of Bangalore based Top Ramen instant noodles for about Rs 500 crore.
Indo Nissin and Mitsubishi Corp confirmed the strategic tie-up. The partnership is initiated to allow equity participation in Nissin Foods HD's instant noodles businesses in Singapore, India, Thailand and Vietnam
Gautam Sharma, MD, Indo Nissin, said the firm's Japanese parent Nissin will remain the majority shareholder with 66 per cent stake and will drive the business.
Mitsubishi will hold 34 per cent voting interest in Nissin Foods Holdings' local instant noodle operations in Singapore, India, Thailand and Vietnam.
The deal marks Mitsubishi's foray into consumer-facing business in India. So far it has been largely into largely into automobiles and trading in the country.
"Entering the market for the manufacture and sale of instant noodles, a staple in Asia, will enable Mitsubishi Corp to establish food processing and manufacturing as one of its core businesses overseas," Mitsubishi said in an official release.
Mitsubishi has huge presence across processed foods, frozen and chilled foods, confectionery, pet food and liquor in Japan.
"We will leverage the alliance to significantly improve business and profitability through vertical integration of supply procurement — improving cost competitiveness, strengthening distribution network, and building relationships with retailers and distributors,” added Sharma.
Indo Nissin's Top Ramen occupies the third spot in terms of market share in the domestic instant noodles market behind Maggi and ITC's Sunfeast Yippee.