After tasting success with Maggi noodles, Nestle looks to recreate the magic with its instant pasta now. Gung-ho about the way the category is doing, the company expects to meet the targets set for its pasta for 2013 by this year itself.

After a little more than one year of its launch, Nestle holds a 70 per cent of the market share, Mr Antonio Helio Waszyk, Managing Director and Chairman, Nestle India, Ltd told Business Line .

“Our pastas are doing very well. We might be close to fulfilling our target set for 2013-14 in 2011 itself,” Mr Waszyk said. To meet the growing demand, the company plans to set up a second line of production unit soon, he said.

The company launched its pastas under the brand name of Maggi, hoping to cash in on its equity with consumers, as well as extend the offerings in the ready-to-eat category. It has also launched soups, pickles and sauces under the same brand. Positioned as a healthy product, the Maggi Nutrilicious Pazzta is made up of semolina and can be cooked in five minutes. Developed in the research and development centre in Germany, the pasta has been launched in two flavours — masala penne, and cheese macaroni — priced at Rs 12 and Rs 15, respectively. Most other pastas in the market also fall under similar price bands.

The ready-to-eat pasta market in India is still a growing one with a handful of organised players. With ITC Sunfeast's Pasta Treat being an early entrant, HUL's Knorr soupy pasta offerings, Future Group's Tasty Treat and Bambino Agro Industries Ltd's pastas are other players in the category. By and large, the segment is dominated by unorganised players. According to an Ernst & Young report, the instant noodles and pasta market in the country would be worth Rs 1,500 crore in the next five years. Estimated at Rs 40 crore, it is growing at 25 per cent per annum, according to the same report. The overall pasta market in India has been pegged at Rs 100 crore.

A 2009 Technopak study reveals that while noodles remain the most commonly prepared non Indian food item, pizzas, pastas and macaroni are catching up.

Results

Last week, Nestle released its financial results for the period ending December 31, 2010. The fourth quarter net profit of the company was reported at Rs 203 crore, compared with Rs 112.9 crore in the corresponding quarter the previous year. It said in a release, “profit from operations (Rs 293.7 crore) and net profit are not entirely comparable as last year results were adversely impacted by higher employees' cost due to “one-off” actuarial losses and brand building or demand - generating activities.” The net profit for the year ending December 2010 increased 24.9 per cent at Rs 818.7 crore from Rs 655 crore in 2009.

“We are starting 2011 with a number of uncertainties, including the intensity of cost increases specially the volatile raw material prices. Together, we will continue to work hard to overcome the challenges. We are also hopeful that the Government will continue to support the Food Processing sector so we can continue to expand manufacturing and employment to provide consumers with affordable products,” said Mr Waszyk.

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