Govt halts Wai Wai bhujia production:Story behind India’s ₹50,000 crore snack market

Food safety regulator Food Safety and Standards Authority of India (FSSAI) has ordered CG Foods India, maker of Wai Wai noodles, to stop producing two variants of its Veg Bhujia namkeen products over severe hygiene and licensing violations. Employment generated by India’s namkeen industry India’s namkeen and bhujia industry provides direct and indirect livelihoods across urban and rural regions: Direct Employment: Over 5 lakh workers are employed directly in processing plants, packaging units, quality control, and logistics facilities. Indirect Employment: Over 15 lakh people depend indirectly on this supply chain. This includes farmers producing gram (chana dal/besan), moth beans, and spices, alongside distributors, wholesalers, and millions of local kirana store owners. Regional Manufacturing Hubs: Key production clusters in Bikaner in Rajasthan, Nagpur in Maharashtra, Indore in Madhya Pradesh, and Rajkot in Gujarat act as major regional job centers. Market share breakdown of major bhujia brands The organized ethnic namkeen and bhujia market is dominated by a few major Indian brands. According to regulatory filings with SEBI and stock exchange disclosures (BSE/NSE) by listed peer Bikaji Foods International, India’s organized bhujia and ethnic namkeen market is dominated by a few established players. FSSAI action on Wai Wai noodles manufacturers: FSSAI officials seized over 32,000 kg of stock, halting the brand’s expansion in India’s ₹50,000 crore packaged snack market. FSSAI orders CG Foods to discontinue bhujia production The FSSAI instructed CG Foods India Private Limited to immediately stop manufacturing two variants of its ‘Veg Bhujia Namkeen’ products. The regulatory order came after food safety inspectors conducted an inspection at the company’s manufacturing facility in Roopangarh, Ajmer, Rajasthan. Legal proceedings have been made against the company. Reasons behind FSSAI action at Ajmer plant FSSAI found multiple safety and operational violations during its factory inspection: Unsafe Processing: Factory workers collected broken noodles from the floor and re-processed them into bhujia products without heat treatment. Change of manufacturing date: The unit used false, predated manufacturing dates on packaged items. Licensing Violations: Variants such as ‘Wai-Wai MaMa’ and ‘Wai-Wai Mama Punte’ were manufactured without proper licenses under Section 31(1) of the Food Safety and Standards Act, 2006. Cleanliness Issues: Inspections revealed inadequate pest-control records and weak sanitation controls. Share of Bhujia products in CG Foods’ revenue CG Foods India is the Indian arm of Nepal-based multinational conglomerate CG Corp Global. While the company is widely known for its instant noodle brand Wai Wai, it recently entered adjacent categories such as bhujia, cheese balls, and sauces. According to corporate disclosures reported by business publications The Economic Times and Inc42, instant noodles remain the company’s main revenue source, while the bhujia segment accounts for a smaller portion of sales. Noodles – The Cash cow of CG Foods India Instant noodles remain the main source of income for CG Foods India. The bhujia and namkeen product lines contribute a small part to the company’s total sales. Size and Growth of India’s Bhujia and Namkeen Industry India’s traditional savory snacks and namkeen market is one of the largest segments within the fast-moving consumer goods (FMCG) sector. Total Packaged Snack Market: Valued at ₹50,590 Crore in 2025. It is projected to reach ₹1,03,556 crore by 2034, growing at a compound annual growth rate (CAGR) of 8.28%. Organized Bhujia Ethnic Namkeen Market: Estimated at ₹8,000 crore to ₹10,000 crore. Traditional vs Western Snacks: Traditional ethnic snacks account for nearly 48% of the overall savory snack market in India. What happens next? CG Foods India must fix all compliance and hygiene issues raised during the inspection before resuming production. The company can restart its Veg Bhujia manufacturing lines only after obtaining official approvals from FSSAI following laboratory test results.