Current Noodles Maker Posts Strong Revenue Growth amid Rising Competition

Yashoda Foods, the manufacturer of the increasingly popular Current brand noodles, has posted strong revenue growth in recent years, signalling rising competition in Nepal’s instant noodles market long dominated by Chaudhary Group, according to a credit rating report.

The company’s operating revenue rose by 31 percent to Rs 7.68 billion in the last fiscal year (FY 2024/25), following an 18.45 percent increase to Rs 5,86 billion in FY 2023/24, the report said.

A credit rating report by Care Ratings Nepal attributes the growth to expanded production capacity and rising sales of noodles and snack products. In addition to Current noodles, the company has diversified into snacks such as cheeseballs, potato crackers, potato sticks, onion rings, millet and roasted items, chips and namkeens under the same brand.

“The company’s product diversification strategy has started delivering results,” the report said, noting a rising contribution of snacks to total revenue.

Although noodles still account for the bulk of income, the share of non-noodle products—primarily snacks—has been increasing. Care Ratings said diversification helps reduce dependence on a single product category and supports long-term growth by ensuring multiple revenue streams.

Yashoda Foods began producing Current noodles in 2017 and has since expanded capacity. Following its merger with in-house company Yashoda Noodles and Snacks Pvt Ltd at the end of FY 2023/24, the company’s annual noodle production capacity increased from 30,000 metric tonnes to 42,000 metric tonnes, while snack production capacity jumped from 900 metric tonnes to 4,500 metric tonnes.

Rivalry with CG Foods Intensifies

As Yashoda Foods’ revenue climbs, its growth appears to be affecting CG Foods, the Chaudhary Group subsidiary long seen as the market leader.

A rating report published by ICRA Nepal last July said growing consumer preference for premium and spicy noodles has slowed CG Foods’ revenue growth from noodles. While CG Foods’ Wai Wai brand remains dominant in the non-spicy segment, Yashoda’s Current and Asian Thai Foods’ 2PM noodles have gained popularity in the spicy category.

Due to intensifying competition in the spicy noodles segment, CG Foods’ revenue declined by 11 percent in FY 2023/24 and fell by a further 6 percent in the first nine months of FY 2024/25, according to ICRA Nepal.

Market Potential Remains Strong

Citing data from the World Instant Noodles Association, Care Ratings noted that Nepal has the highest per capita instant noodle consumption in the world, indicating significant room for market expansion.

The report said Yashoda Foods’ wide product range and flavour diversity strengthen its growth prospects. The company has expanded its nationwide presence through around 300 authorised dealers and also supplies directly to department stores and supermarkets.

Yashoda Foods has also begun exporting noodles and other products to India and other markets. Exports accounted for 12 percent of the company’s total revenue in FY 2024/25, the report said.