OSAKA (Kyodo) Nissin Foods Holdings Co. said Friday it will form a capital alliance with the holding company of Russia's top instant noodle maker to enter the Russian market, where demand for high-end noodle products is expected to expand.
Nissin Foods will invest about ¥26.8 billion for a 33.5 percent stake in Cyprus-based Angleside Ltd., which owns Russia's top noodle maker, LLC Mareven Food Central.
The noodle maker is considering marketing its main product, Cup Noodle, in Russia, company officials said.
Russian demand for instant noodle products was estimated at about 2 billion packs in 2008, with per capita consumption standing at around 14 packs, the company said in a statement.
Demand is expected to rise further as Russian consumers opt for higher quality, according to the statement.
Nissin Foods will initially take a 14.99 percent stake in Angleside in January by purchasing outstanding shares and buy more shares through a third-party allocation for about ¥9.3 billion.
Nissin Foods will raise its stake in Angleside to 33.5 percent by around September 2010.