Yathar Cho Industry Ltd, the producer of Yum Yum instant noodles in Myanmar, is gearing up for expansion on expectations that competition at home will intensify.
Managing director Wai Phyo said the company plans to expand in Myanmar and in the region to cash in on increasing demand.
"There are 4-5 million citizens living outside the country, and that in itself is a huge market, accounting for almost 10% of the national population," he said.
Daily production capacity of Yum Yum noodles is 900,000 packets, and the company increases capacity on a yearly basis.
Wai Phyo said the market faces an increase in competition as some local companies look to form joint ventures with foreigners.
"But we have a deep understanding of the market and been here since 1997," he said.
Thai President Foods Plc (TF), the producer of Mama instant noodles, recently announced it will spend 100 million baht to build a second factory in Mandalay by the end of next year.
Wai Phyo said 10-12 instant noodle brands are sold in Myanmar including two domestic brands.
His company claims to have a 60% share of the instant noodle market in Myanmar, but he did not provide figures about market value.
TF estimates the market is worth 1.4 billion baht and claims its Mama brand has a 35% share thanks to its factory in Yangon.
With the Asean Economic Community due to launch in late 2015, barriers to entry will not be very high, resulting in the need for Yum Yum to innovate to survive the competition.
"Innovating instant noodles might be bizarre, but what we try to focus on is not so much the price but the consumer experience. When you consume products, do you associate it with certain emotions and would you take it again?" asked Wai Phyo.
This includes experimenting with texture, taste, colour, visuals and convenience, he told the Bangkok Post.
Yathar Cho is launching new flavours including chicken curry.