Thai President Foods Plc (TPF), the producer of Mama instant noodles, is set to invest an additional Bt 300 million (US$8.8 million) to double its production in Hungary.
Pun Paniangvait, Manager of the President’s office commented that Thailand Bt 20 billion (US$584 million) instant noodle market is close to maturity with only moderate growth of 1-2% in volume terms. As such, the company has shifted its strategy to international market growth.
TPF plans to increase the registered capital of its subsidiary, Thai President Hungary to Bt 600 million (US$17.5 million) from Bt 300 million (US$8.75 million). The new capital will be used to install new machinery and establish a new factory which will start construction in 2024.
Paniangvait said that instant noodles are now more acceptable to European customers compared to more than a decade ago. As such, Europe will be the next bastion for company expansion.
Currently, TPF operates 2 production lines in its factory in Hungary. With the new planned facility, TPF no longer needs to import instant noodles from Thailand to meet current demand in Europe. The company exports 2 instant noodle brands to the European market. The Thai Chef brand caters to the German market, while the Mama brand serves the Finnish market.
Paniangvait said that Europe will soon contribute 40% to TPF total revenue from instant noodles from the current 20-25%. TPF is also seeking for business partners in Africa as it aims to expand into the continent where consumers seem to be already familiar with instant noodles.
