MANILA, Philippines - Japan's Nissin Food Holdings is hiking its investment in its joint venture with Gokongwei-led Universal Robina Corp. (URC).
Nissin-URC makes and markets brands such as Nissin Cup Noodles, Nissin Ramen and Nissin Yakisoba in the Philippines.
Nissin also acquired URC's noodle plant in Tarlac, as well as its equipment and inventories.
Japan's leading noodle company also bought the license to produce Payless products. This means the company will produce Payless instant noodles using its new technology and equipment.
On the other hand, URC will handle marketing, sales and distribution of the products.
"We have been with Nissin-URC since 1995 and know that Nissin and Payless are great products that have a lot of potential especially in a growing market such as the Philippines," Eigo Ogiwara, Nissin Foods Holdings chief representative for Asia, said.
URC managing director Nilo Mapa said the deal is expected to make Payless and Nissin bigger market players in the country, as well as enhance efficiency and profitability.
Mapa noted noodles have become an all-day staple in the country, and this trend is expected to continue to grow.
"This transaction will help us ride the wave of growth that we expect in the coming years and beyond. We are now second in the market and we want a bigger piece of the pie," he said.