HUL goes for second try in noodle war with Nestle, ITC | business | Hindustan Times
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HUL goes for second try in noodle war with Nestle, ITC

Hindustan Unilever’s Knorr Soupy Noodles — touted as a product that would challenge the dominance of Nestle in the noodle market — has fallen below expectations and is poised for a relaunch.

business Updated: Sep 21, 2012 23:28 IST
Rachit Vats

Hindustan Unilever’s Knorr Soupy Noodles — touted as a product that would challenge the dominance of Nestle in the noodle market — has fallen below expectations and is poised for a relaunch.

Knorr managed to grab a marketshare of only 2.6% in a span of two years while even late entrant ITC’s Yippee captured a marketshare of 6% in a year, according to data from industry researcher Nielsen. Unable to make a dent in the noodles category, HUL is set to launch Knorr Soupy Noodles in a completely new avatar by December, company sources said. HUL is looking at a thorough overhaul — revisiting the packaging, taste and pricing.

"The noodles offering will be repositioned and relaunched soon," said an HUL executive on condition of anonymity. "The re-launch is still at the planning stage," he added. No more details were offered. http://www.hindustantimes.com/Images/popup/2012/9/22_09_12-buss27c.jpg

HUL declined to divulge any details. “We cannot comment on speculation regarding future plans and hence have no comments to offer on your query regarding re-launch,” said an HUL spokesperson.

“There were many expectations from the brand but it has not done well in the past, forcing HUL to take this step,” said industry analyst V Srinivasan of Angel Broking.

He said Nestle’s Maggi has been synonymous with noodles and both Nestle and ITC have also penetrated the market with Rs. 5 packs. India’s noodles market is estimated at over Rs. 3,000 crore in annual sales and includes pasta, vermicelli and instant noodles. It is growing at 20% per annum. Nestle is the market leader with 58.3% market share in the overall category and over 80% in the pure noodles category.