INDIA/NIGERIA: Ajinomoto, Toyo Suisan JV form noodle JVs
Japanese food giant Ajinomoto and noodle maker Toyo Suisan Kaisha have signed deals to form ventures to try to capitalise on the growing markets for instant noodles in India and Nigeria.
Toyo Suisan will own 51% of the Indian venture, while Ajinomoto will hold 51% of the Nigerian business.
Toyo Suisan will being its technical expertise in noodle production to the businesses, which will leverage Ajinomoto's routes-to-market and marketing capabilities in the markets. Ajinomoto entered Nigeria in 1991 with the establishment of the West African Seasoning Co. The company expanded its presence into India in 2003 when it set up Ajinomoto India Pvt. Ltd.
Ajinomoto said the tie-ups would allow it to accelerate growth in these two markets, with instant noodles becoming a growth driver for its established seasonings business. For its part, Toyo Suisan said the joint venture would facilitate its rapid entry into India and Nigeria.
"By coordinating their respective strengths as equal partners, the companies will achieve speedy business expansion into emerging markets with notable growth," the companies said in a memorandum of understanding.
The firms will work together to develop a jointly-owned new brand in each market. The firms expect to commence sales in Nigeria during fiscal 2015 and India by fiscal 2016. Ajinomoto and Toyo Suisan aim to have achieved a 15% market share in each country within the first ten years of operation.
In a separate agreement, Ajinomoto and Toyo Suisan are to establish a venture to expand in the US market for frozen noodles.
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