TOKYO, Dec. 18 (Kyodo) — Ajinomoto Co. and Toyo Suisan Kaisha Ltd. have agreed to set up a joint venture in the instant noodle business in both India and Nigeria to meet growing demand, the two companies said Wednesday.
Ajinomoto, Japan's leading food additive and seasoning maker, and Toyo Suisan, which markets instant noodles under the "Maruchan" brand, plan to start marketing instant noodles under a new brand in India in fiscal 2016 and in Nigeria in fiscal 2015, they said.
Toyo Suisan will develop and manufacture the noodles, while they will be marketed utilizing marketing channels of Ajinomoto, the two companies said.
The two companies aim to sell 500 million servings a year in each country within 10 years of their entry into the markets.
Toyo Suisan will hold a 51 percent stake in the joint venture to be established in Chennai, southeast India, and Ajinomoto will take the remainder.
As for the joint venture in the Nigerian capital of Abuja, Ajinomoto will take a 51 percent stake and Toyo Suisan will hold the remainder.
Instant noodles are low-priced and can be prepared simply and stored at room temperature.
Ajinomoto and Toyo Suisan also announced a partnership in North American operations, with Toyo Suisan planning to acquire a 20 percent in Ajinomoto's frozen noodle manufacturing business in Oregon.