ITC, a diversified conglomerate, believes that there is additional potential to increase the market share of its Noodles segment under the YiPPee! brand in the North, particularly in regions where it currently has a relatively smaller presence.
YiPPee! holds the second position among noodle brands across India. The conglomerate’s Foods business remains dedicated to expanding in regions where there is still room for increasing market shares. Nestle India’s Maggi currently leads the Noodles segment.
“There are large regions of the North where we are still relatively smaller (in Noodles). So, we want to grow there going forward,” said Suresh Chand, Vice president & Head of Marketing, snacks, noodles & pasta, ITC Foods.
Chand emphasized that the company’s primary focus is on “product augmentation” to further enhance market share in the Noodles segment.
Continue Exploring: ITC launches new YiPPee! Wow Masala Noodles at INR 10 to rival Nestle’s Maggi
“Over the years we have done a very strong entry into this category. We have come up with a completely different proposition and we stand for long non-sticky noodles and there are veggies also that we have provided in the product. And it has given us extremely good results over the years. And very recently what we have done that along with Orange bucket (with differentiated taste), we have also come up with a product Wow Masala which is into the Yellow bucket. It has a better masala and even the quantity of the masala is more,” Chand said on Wednesday.
He made these remarks during an event where ITC’s “Sunfeast YiPPee!” and “Bingo!” revealed a strategic partnership with the Argentine Football Association (AFA) as their official regional sponsor.
Bingo! holds the top position in the Bridges segment of Snack Foods. Bingo! earlier had collaborations with Kerala Blasters Football Club and East Bengal FC.
According to Chand, Noodles and Snacks are sizable categories at the industry level.
“Because there is a lot of play by local and regional players also, these growths (for the company) need to now be further enhanced. And that is where these partnerships and your products would be important going forward,” he said.
As part of the collaboration with the Argentine Football Association (AFA), the respective brands have introduced packaging showcasing star players such as Lionel Messi, Ángel Di María, Julián Álvarez, and Emiliano Martínez.
“YiPPee! and “Bingo! are the categories where there is a lot of headroom still to grow in terms of penetration and average consumptions. There are a lot of avenues to grow. We have to continue to work on our brand building, consumer connect and distribution. I am quite hopeful that the growth will continue and we keep accelerating in these categories,” Chand said.
He added that Snacks, noodles, and pasta form a “significant portion” of ITC’s Food business.
Significantly, the conglomerate’s non-cigarette FMCG business experienced a 7.59 percent year-on-year growth in revenue, reaching INR 5,209.05 crore in the third quarter of this fiscal year. During the same period, the segment exhibited a 24 percent year-on-year growth in operating profit, totaling INR 431.82 crore. In its media statement following the announcement of results on Monday, the company noted that its non-cigarette FMCG business demonstrated resilience in performance amid a slowdown in consumer demand. Additionally, the segment’s EBITDA margins expanded by 100 basis points year on year, reaching 11 percent.
