CG planning to enter Indian Securities Market by the year 2020; is it going to do the same in Nepal?

CG Food India is planning to enter the Securities Market of India through launch of IPO by the year 2020. The company has plans to diversify its operations by venturing into newer segments. Trademark product of the company, instant noodles Wai Wai, that has production capacity of 2.5 Billion packets per year, will be increased to 5 Billion packets by the mentioned year.

As per the sources, CG Corp Global (parent company) has plans to diversify to segments such as personal care, home detergents, cereals etc. Binod K Chaudhary, Chairman of CG Corp Global told Press Trust of India (PTI) that CG Food India will go for an IPO in 2020. The company will enter the European market by 2019 and is in the process of forming a joint venture with a European firm, he added. He also mentioned that the company has already entered in essential commodities and personal care market in Nepal through different brands.

”We have just finalized to acquire a plant in Kazakhstan. The Egyptian government has already given us land, and we are going to be near Cairo in one years' time," he said adding that "in Bangladesh, we are opening this month". According to him, Bangladesh plant would cater to the Myanmar market also, while Egypt is for Africa and middle-east markets, and Kazakhstan would serve the Commonwealth of Independent States (CIS) countries.

CG Food India has a turnover of around INR 1,000 Crore. The biggest competitor of CG Corp is Swiss FMCG giant Nestle, which leads the instant noodles market with its Maggi portfolio.

CG Corp Global is Nepal’s first and only billion-dollar company and is present in over 30 countries. However, the company has planned to go public in the Indian market and no such plan had been made public for Nepal's securities market. It would be optimistic to hope that CG goes public in Nepal as well after it does so in India.

CG's entry into Nepal’s securities market could open up a broader scope in the market, boosting the growth of the market. It would also stimulate the investment environment in the country enabling Nepalese investors to grown both morally and financially.

Looking at the current situation of the securities market of Nepal, the market is getting weaker with time and investors are trying to move out of the market, CG’s entry could turn the current situation in terms of market growth and investors’ sentiments towards the market.