By 2025, Nestlé India will invest Rs 4,200 crore in India

2 Aug 2023 , 02:14 AM

 By 2025, Nestlé India plans to invest INR 4,200 crore, which will be directed towards building a tenth factory in Odisha and expanding the production capacity of its chocolate, coffee, and noodles products.

‘We’ve made significant investments in Make-In-India. Between 2020 and the first half of 2023, we have already invested approximately Rs 2,100 crore in expanding our manufacturing capacity. An additional Rs 4,200 crore will be invested from 2023 to 2025,’ said Suresh Narayanan, Chairman, and Managing Director of Nestlé India during a media roundtable. He further explained that out of this amount, around Rs 894 crore will be allocated for the new factory in Odisha. Nestlé India is a strong supporter of the ‘Make in India’ initiative.

Narayanan continued by mentioning that the INR 2,100 crore investment was equally distributed across the food and beverage, chocolate and confectionery, and nutrition sectors. Earlier this month, the Industrial Promotion and Investment Corp. of Odisha Ltd (IPICOL) granted the company permission to construct its tenth state-of-the-art facility.

Regarding the company’s growth prospects, Narayanan expressed optimism in catering to both mass-market and high-end goods in the country. He emphasized the company’s focus on expanding offerings not only in urban areas but also in semi-urban and rural regions, including Tier 1-6 towns, mega towns, and metro areas.

In pursuit of expanding its reach in semi-urban and rural areas across 12-13 states, Nestlé is concentrating on providing relevant products. Currently, rural markets account for 20% of the company’s sales.

Nestlé India is reinforcing its strategies in several categories, particularly in coffee and chocolates, to strengthen its premium portfolio. ‘While a third of our portfolio is price-point-led, we aggressively pursue opportunities for premiumization,’ added Narayanan.

Earlier this week, Nestlé India published its second-quarter statistics, revealing a remarkable 32% increase in profits. The FMCG giant follows a January-December financial year, with its second quarter ending on June 30, 2023.

During this period, net sales rose to Rs 4,619.50 crore from Rs 4,015.98 crore in the second quarter of the previous fiscal year, representing a 15.02% increase. Domestic sales saw a 14.6% surge, reaching Rs 4,420.77 crore from Rs 3,857.56 crore in Q2 2022, while exports rose by 25.4% to Rs 198.73 crore from Rs 158.42 crore. Key brands like KitKat, Nescafe, and Maggi continue to be well-received by consumers and perform strongly in the market.

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