Aug 7: Maggi, the instant noodles brand from Nestle India Ltd, has climbed up the ladders to grab back the spot it lost a few years ago. According to reports, Maggi has now over 60% market share, making it the dominant player in the market once again.
The information was disclosed by a report that quoted Nestle India chairman and managing director Suresh Narayanan, who said that Maggi was having little over 60% market share at the moment. Besides, Maggi has also managed to return to they were in before they entered into crisis.
According to Narayanan, Maggi is close to the position it maintained during the pre-crisis period going by business value. Details about the value were not disclosed, but Narayanan said that Maggi was ‘almost back there’.
Though dominant in the market, Maggi will still have to work it out if to regain its lost share in the market in terms of volume. Prior to the crisis, Maggi accounted to over 75% of the total share in the instant noodles market. Narayanan said that the company is still having some time to catch up with that volume.
At present, Maggi contributes one-third of the total sales of the company. Prepared foods under Maggi and Maggi franchise contributes to 30% of the total sales, and it include a range of products apart from Maggi noodles. Nestle too had crossed the Rs 10,000-crore sales mark during the previous year. The company is now planning to introduce new items products under the Maggi brand that includes Maggi dips and Maggi Special Masala.
Back in 2015, Maggi was banned by Food Safety and Standards Authority of India (FSSAI) following the allegation that the instant noodle contained lead beyond permissible limits. Nestle was forced to withdraw the product from the market for five months, but made its way back with Nestle after a series of legal battles in November 2015.