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Nestle to expand operations with Rs 6,500-cr outlay

Friday, 09 Feb 2024
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FMCG major Nestle plans to expand its manufacturing footprint and operations in India, for which it will invest Rs 6,000 to 6,500 crore between 2020-2025, to meet the rising demand. From its inception till 2020, Nestle India has invested Rs 7,000 crore.

The growth is also reflected in the capex of the company, which is now investing eight percent of its turnover on capex, which is much higher than earlier. Nestle is setting up its tenth factory at Odisha and is increasing existing capacities in prepared dishes, which is the mainly Maggi range, doubling its coffee business, increasing chocolate lines and augmenting investment in its distribution chain.

The company which is keeping a high innovation momentum has launched 130 new products in the last seven years, enabling diversification of its offerings.

Besides urban centres, smaller tier-II, III, IV & V are also opening up for Nestle to support them with portfolio intervention and distribution expansion. Its rural penetration also has gone up significantly, from a couple of years ago.

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