Background of the study

Instant noodles are a type of pre-packaged, ready-to-cook noodles that are sold in a

cup or packet, often with a packet of flavoring. Instant noodles are a convenient and

affordable food option that can be eaten as a snack or as a part of a meal. They are often

flavored with a seasoning packet, which can be added to the noodles while they are being

cooked. There are types of instant noodles i.e., white instant noodles and brown instant

noodles. White instant noodles are made of wheat flour & water and basically uncooked and

brown instant noodles are also made up of wheat flour and water but is cooked partially while

manufacturing and can be cooked further if consumer wants to. Instant noodles are popular

worldwide and are especially popular in Asia.

The instant noodles industry in Nepal began in the 1980s with the establishment of

Gandaki Noodles. The company’s founders, Krishna Acharya and Phanindra Man Shrestha

initially purchased Chinese noodle-making machines to produce Cinke Chaumin, but later

obtained Japanese machines to increase production. When they applied for a license to open a

factory, the government initially denied the request, stating that the market was too small for

large industries. However, after a meeting with King Birendra during his visit to Pokhara,

permission was granted to open the factory in Pokhara, which has since become a major

center for the production of instant noodles in Nepal.

Wai Wai is a brand of instant noodles produced by the Thai preserved food factory,

CO – LTD (TPFF) in Thailand and by the Chaudhary group in Nepal. The brand has been

produced in Thailand since 1972 by Thai preserved food factory CO. LTD. In 1984, the

Chaudhary group, in collaboration with TPFF, introduction of Wai Wai instant brown

noodles in Kathmandu, Nepal. Its initial capacity was 120 packets per minute. Today it is

2,100 packets per minute or 40,000 tonnes per years. Today, Wai Wai remains the undisputed

king of the market.

 Yasodha Foods Pvt. Ltd (YFPL) started its business operation on 7 May 2017. It

manufactures various brands of instant noodles, i.e., Lali, Current, Current Hot & Spicy,

Current Hot & Lemon, Zoopy, Kaliz, Golu, Oppo, Tinti minti and more. YFPL in a short

period of time has been able to achieve a leading market share in noodle industry.

The noodle industry is highly competitive, but companies like Current and Wai Wai

have been able to succeed by continuously innovating their products and implementing

effective marketing strategies. Despite the high barriers to entry and exit that are

characteristic of an oligopoly market, these brands have managed to thrive.