Prathamesh Basagare, Pune
Nestlé India recently announced that the company was committed to making investments totaling around Rs 4,200 crore through 2025, including funding for the construction of its eleventh factory in Odisha. In order to increase capacity, the company spent Rs 2,130 crore between 2020 and 2023, according to chairman and managing director Suresh Narayanan. Investments of Rs. 4,130 crore have been announced for the first half of 2023 to 2025.
“Over Rs 6,000 crore investments is coming around. In this, about a third will be invested in prepared dishes and cooking aids segment, about a third will be in chocolates and confectionaries and rest will be in nutrition and coffee,” he said
Over 100 new items have been introduced by Nestlé India in the previous seven years. When discussing the portfolio’s trajectory, Narayanan claimed that consumer patterns are what shape it.
Narayanan stated that the business intended to enter fresh categories in order to build new growth pillars. About 30 different projects for new items and categories are in the works, he said, and the first half of 2023 has already seen the launch of about 10 new products.
Nestlé is also placing bets in the field of health science. “It’s a slow-burn category and we expect it to contribute 2-5 percent to the overall revenue in 5-10,” the CMD stated.
He continued by saying that the corporation was still concerned about food inflation. He also included a warning regarding inflation. According to him, 2022 experienced exceptional inflation, and if it subsided, volume growth would return to 7-8%. In comparison to the expert’s projections of 7-8 percent, the company’s underlying volume growth for the months of April through June was just 4-5 percent.
Nestlé India recorded a net profit of Rs 698.3 crore for the June quarter, which was in line with the poll’s Rs 690 crore projection from CNBC-TV18. In general, other factors like the company’s sales, operating profit, and EBITDA margin met the expectations set by CNBC-TV18’s survey.
Currently, nine of Nestle India’s plants in this country employ about 6,000 people. Nestle SA, a multinational food and beverage giant based in Switzerland, has India in its top 10 global markets.