원본보기 아이콘

Paldo's 'Dosirak (Доширак)', the brand leading the Russian instant noodle market, has established a new corporation, further expanding its territory. Dosirak, which holds a market share of over 50% in Russia, is seen as cementing its throne amid the K-ramen craze by laying the foundation for further growth. Backed by explosive demand, Paldo now owns and operates local production plants, distribution companies, and even a flour milling company, effectively building what can be described as a 'Dosirak Kingdom' in Russia.

원본보기 아이콘

According to the food industry on April 23, Dosirakrus, Paldo's Russian subsidiary, invested 539 million rubles (approximately KRW 10.6 billion) this February to establish a new company, 'Dosirak CG (ДОШИРАК СИ ДЖИ)'. This is the first new corporation in three years since the establishment of the Dosirak Nizhny plant corporation and the Dosirak Tambov flour milling company in 2023. Until now, Paldo has operated five corporations in Russia: Dosirakrus, Dosirak Koya, Dosirak Ryazan, Dosirak Nizhny, and Dosirak Tambov.

원본보기 아이콘

Paldo's Russian subsidiaries, including Dosirakrus, have continued to expand their production lines. Dosirak Ryazan also invested 160 million rubles in facility installation and construction projects. Last month, Boris Yashinskiy, Governor of Ryazan, visited the plant, held practical discussions with management about possible future production expansion, and promised, "(At the regional government level) all possible support will be provided." Currently, Dosirak Koya is constructing a new warehouse, with assets under construction reaching 622.2 million rubles at the end of last year. Dosirak Koya plans to expand its business this year by launching new types of product lines.

Dosirak Nizhny is currently streamlining production by discontinuing the macaroni line last year and selling and relocating some equipment.

원본보기 아이콘

원본보기 아이콘

원본보기 아이콘

원본보기 아이콘

원본보기 아이콘

원본보기 아이콘

원본보기 아이콘

원본보기 아이콘

원본보기 아이콘

Paldo's Dosirak is a leading brand with over 50% share in the Russian instant noodle market. Dosirak has dominated the Russian noodle market through localization strategies. To cater to Russian consumers, who are not accustomed to spicy flavors, the company launched a variety of flavors such as chicken, mushroom, and shrimp. Reflecting local eating habits that favor mayonnaise, 'Dosirak Plus'-which comes with mayonnaise sauce-became especially popular.

At one point, Dosirak's market share exceeded 60%, but it has been gradually declining in recent years, requiring a strategic response. According to a report by the daily Kommersant, citing analysis by local payment firm Evotor, Dosirak's instant noodle market share dropped by 2 percentage points year-on-year to 51% last year.

원본보기 아이콘

The story began in the 1990s, when merchants from Vladivostok sold Dosirak in bundles in Russia, leading Paldo to open a Moscow representative office in 1997. This move led to the construction of Dosirak Koya's first plant in 2004.

In 2009, Paldo built a second plant in Ryazan. Since 2010, Dosirakrus has been solely distributing products manufactured at the two plants throughout Russia. Last year, sales between the two companies exceeded KRW 200 billion, as Dosirakrus sold finished products produced at the Ryazan facility.

In 2023, to meet soaring demand, Paldo built its third factory in Nizhny Novgorod and, in the same year, established and started operating a flour mill in the Tambov region.

원본보기 아이콘

Sales continue to rise. According to Paldo's audit report, the combined sales of Dosirakrus and Dosirak Koya reached KRW 632.8 billion last year, up 29% from the previous year. The combined revenue of these two corporations, which stood at around KRW 300 billion in 2021, surpassed KRW 600 billion for the first time last year.

Dosirakrus alone posted KRW 500.9 billion in sales last year, surpassing Paldo's head office sales of KRW 473.7 billion. As a result, the net assets of the local Russian subsidiaries have increased significantly. Dosirakrus's net assets jumped 59% from KRW 379.8 billion in 2024 to KRW 602.7 billion last year. Dosirak Koya's net assets also grew by 42% during the same period.

Despite this thriving Russian business, these subsidiaries did not pay dividends to the Korean headquarters last year. Previously, Dosirakrus had remitted a portion of its earnings as dividends to Paldo. In the early stages, profits were used for local investments, but in recent years, dividend payments began, with nearly KRW 30 billion remitted in 2023. This amount accounted for about 32% of the KRW 90.1 billion net income earned in 2022.

However, from 2024 onward, no dividends have been paid for two consecutive years. This is believed to be due to strict foreign exchange controls imposed by Russia following the outbreak of the Russia-Ukraine war in February 2022, which have blocked dividend payments to the Korean headquarters.

원본보기 아이콘

Paldo plans to reinvest profits earned locally in Russia to further expand its business in the country. Dosirakrus, responsible for exclusive distribution in Russia, is investing capital in establishing new corporations and supporting manufacturing bases such as Dosirak Koya and Dosirak Ryazan through long-term loans exceeding KRW 10 billion, thereby aiding local business expansion. A Paldo representative stated, "We will continue to increase our investments to further solidify our position in the Russian market."

원본보기 아이콘

Russia has become the new battleground for K-ramen. According to global market research firm Euromonitor, the Russian ramen market is projected to grow at a high annual rate of over 10% from 2021 to 2030, reaching USD 1.05 billion by 2030.

In particular, the Korean Wave has fueled growing preference for K-ramen. Last year, exports of ramen to Russia rose by 75% year-on-year to USD 45.86 million. Samyang Foods' Buldak Bokkeum Myeon is also increasing its market share in Russia, and Nongshim, with Shin Ramyeon at the forefront, is set to establish its own Russian subsidiary in June.