Baba Ramdev launches 'healthy' noodles

THE competition in the instant noodles market is set to intensify with Patanjali Ayurved, the FMCG venture promoted by yoga guru Baba Ramdev, on Monday launched its “ healthy” noodles to take on Nestle’s Maggi which has bounced back on shop shelves after a 5- month ban.

In order to meet the product demand, Patanjali will set up five manufacturing plants in Delhi NCR, Madhya Pradesh, Maharashtra, Karnataka and Uttar Pradesh within a year. These plants will also make other Patanjali products.
“ By the end of December, our noodles will hit one million stores. We are ramping up our production capacity,’’ Ramdev told reporters here.
Maggi had an 80 per cent share in the Indian market before the ban, according to a Namura report.
The other strong player in the market is ITC’s YiPPee! Noodles and the two companies have been engaged in fierce rivalry.
The competition is bound to get fiercer as Patanjali has priced its 70 gram pack of ‘ Atta Noodles’ at ` 15, claiming it to be cheaper than the price of its competitors.
Ramdev said, “ it is ` 10 cheaper than our rivals, who are selling atta noodles at ` 25.” He also said that the Patanjali noodles are based on rice bran oil and not palm oil which other manufacturers use.
Its products are available at modern trade shops, including Reliance Fresh, Big Bazaar, D Mart and Patanjali’s own retail network.
Nestle India relaunched Maggi noodles in the market last week after Bombay High Court lifted the ban on it imposed by FSSAI and Maharashtra FDA. Ramdev said Patanjali will enter new product categories such as childcare, skincare and health supplement by the end of this year.
The company had sales turnover of ` 2,007 crore in 2014- 15. “ We are looking at 150 per cent growth in our sales this year and aiming to cross ` 5,000 crore turnover,’’ Ramdev said.
In order to compete with multinational companies, the company will soon start airing TV commercials for Atta Noodles and other products such as hair care, ghee and toothpaste.
ITC had unleashed an ad blitz in the wake of the ban on Nestle in the hope of eating into the market share of the popular Maggi brand. The ads had deliberately made an oblique reference to Nestle’s quality when the Swiss company was going through problems with Indian regulators.
However, even the ITC saw the sales of its instant noodles coming down during the July- September quarter of the current fiscal.
ITC has in fact stated that “ in the instant noodles category, regulatory issues largely pertaining to a competitor’s products impacted performance during the quarter. The business launched a focused and integrated 360 degree com- Baba Ramdev with his associate Balkrishna at the launch of Patanjali instant wholewheat noodles in the Capital on Monday.
The products would be available at modern retail stores, including Big Bazaar, Reliance Fresh & D Mart munication campaign to reassure consumers on the quality and safety of YiPPee! Noodles. This intervention has aided a smart recovery in the consumer franchise of YiPPee! Noodles in recent weeks.’’ Here again the reference to Maggi is quite obvious.
Nestle India MD Suresh Narayanan has hit back at ITC’s ad campaign saying while “ competition is fully entitled to do what they do”, Maggi did not need to “ shout from the rooftop to what quality means to us”. Nestle India reported a 60.1 per cent decline in its stand- alone net profit at ` 124.20 crore for the July- September quarter as the ban on Maggi noodles eroded its bottomline.
However, the company has surged back with all clearances in places and launched a strong ad campaign to take on its rivals.

It has also roped in leading e- tailer Snapdeal to increase market share through flash deals.