Nestle India to set up new plants, invest Rs 5,000 crores
According to Nestle India CEO Mark Schneider, the food and beverage behemoth with its headquarters in Switzerland intends to invest Rs 5,000 crore in India over the next three and a half years. According to the FMCG company, which manages almost 2,000 brands globally, this will enable Nestle to accelerate its core business in India and take advantage of fresh growth prospects.
This Rs 5,000 investment will be put to use for the company’s capital expenditures (Capex), the construction of new plants, acquisitions, and the growth of its product line. Subject to clearances and permits, the investment would also contribute to the expansion of employment possibilities in the domestic market.
Schneider stated that the Swiss food and beverage giant has an investment plan of Rs 5,000 crore through 2025 when discussing investment plans for the Indian market. In order to increase its manufacturing capacity, Nestle, which has 9 facilities and employs around 6,000 people nationwide, is looking at new locations.
When comparing the investment in this country and the goal for investment through 2025, Schneider noted that “we are talking about Rs 5,000 crore and that compares to Rs 8,000 crore over the last 60 years when we started manufacturing in this country.”
He continued by saying that Nestle, which has been operating in India for more than 110 years, began producing there in the early 1960s. India is oddly one of Nestle’s top ten markets.
“We began our first manufacturing facility in 1961, so over the course of that time, it has totaled Rs 8,000 crore, and over the course of the next three years, it will total Rs 5,000 crore,” said Schneider.
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Nestle India
The company further asserts that this investment will go into development activities, brand growth, and substantive contributions on the ground in addition to expediting and ramping up Capex.
Managing Director and Chairman of Nestle India, Suresh Narayanan, declared that the company’s core business would be accelerated as a key area of focus. He declared, “We are definitely looking at a significantly accelerated plan.”
According to Narayanan, this plan contains three pivots, one of which is to maintain the company’s high growth pace over the previous 22 quarters. The second phase is to carry it out sustainably, and Nestle has “much progressed” in that direction.
“And the third part is really to take advantage of new opportunities for growth,” added Narayanan. “Whether it’s plant-based proteins, healthy ageing, healthy snacking, or leveraging some of the Indian grains into products for the company.”
Schneider went on to say that Nestle India’s business has been “consistent at extremely high levels” for 22 quarters, which is “amazing” and “really stunning,” and that this demonstrates a complete willingness for “open chequebook” support at every stage.
Additionally, the investment would emphasize natural expansion and the improvement of infrastructure, including current industries and research centres. So, Schneider continued, “on top of that, if we perceive good opportunities for M&A, we will be pleased to investigate those.”
