Mitsubishi acquires 34% stake in Indo Nissin Foods

Mitsubishi (MC) has announced that it will now hold 34% stake in Indo Nissin Foods, which produces Top Ramen instant noodles in India, for an estimated Rs5bn ($80.22m).

The deal will give MC rights over Nissin Foods’ operations in Singapore, India, Thailand and Vietnam.

MC said that the transaction is a part of its new strategy to expand in the Asian market by forming alliances with leading companies.

The Economic Times reported managing director at Indo Nissin Gautam Sharma as saying that Nissin, the company’s Japanese parent will will own majority stake with 66% and will drive the business.

Mitsubishi said in a statement: "Entering the market for the manufacture and sale of instant noodles, a staple in Asia, will enable MC to establish food processing and manufacturing as one of its core businesses overseas."

In partnership with Nissin Foods, MC is expected to leverage its vertical integration business model expertise.

Mitsubishi has a huge presence across processed foods, frozen and chilled foods, confectionery, pet food and liquor in Japan.

Sharma was further quoted by the Economic Times as saying: "We will leverage the alliance to significantly improve business and profitability through vertical integration of supply procurement, improving cost competitiveness, strengthening distribution network, and building relationships with retailers and distributors."

Employing approximately 68,383 people, Mitsubishi is headquartered in Japan and has capital worth JPY204bn.

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Image: Indo Nissin Foods is the producer of Top Ramen instant noodles in India. Photo: courtesy of artemisphoto/freedigitalphotos.net.