Nestle to Inject ₹6,000-6,500 Crore into Indian Manufacturing Operations for Expansion, Says Senior Executive

9 Feb 2024 , 12:15 PM

Nestle is extending its manufacturing footprints and operations in India, with plans to invest ₹6,000 to 6,500 Crore between 2020 and 2025 to accommodate rising demand, according to India Chairman and Managing Director Suresh Narayanan.

Nestle India has spent ₹7,000 Crore in India from its creation to 2020, but the company’s investment in the last five years has exceeded that of the previous 20-25 years, according to Narayanan during a media round table here.

Nestle India has previously declared plans to invest ₹2,000 Crore between 2000 and 2020, and then again in 2022 to invest ₹5,000 Crore for expansion plans, by 2025.

Nestle India, which owns popular brands such as Maggi, Nescafe, KitKat, and others, is establishing its tenth factory in Orissa and increasing existing capacities in prepared dish manufacturing, primarily for the Maggi range, as well as doubling its coffee business, expanding chocolate lines, and increasing investment in distribution channels.

Nestle’s revenues in 2023 surpassed ₹19,000 Crore. Currently, India is among the top 10 markets for Swiss multinational Nestle SA.

In terms of demand, Narayanan stated that the urban market has opened up considerably, with a strong sweet spot, while the lower tiers II, III, IV, and V are also opening up, with Nestle supporting them through necessary portfolio intervention and distribution development.

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