Oct 24, 2020
Nestle India is going to invest Rs. 2,600 crore over the next three to four years to increase its manufacturing capacity in the country The FMCG giant terms this move as “vindication of confidence and trust” the company has in its India journey. The company, which saw a robust 10.23 percent growth in its domestic sales in the July-September quarter, said its production units have returned to “normal output” post lockdown.
The new investments are intended at expansion activities of the existing units and towards the construction of its new upcoming unit in Sanand, Gujarat. For now, Nestle has shown a marginal 1.37 percent drop in its net profit at Rs. 587.09 crore in the third quarter ended September 30, 2020.
Nestle, which presently operates eight production units in India, said its factories have returned to normal output and witnessed growth driven by an improved supply situation. And total sales and domestic sales of Nestle increased by 10.2 percent driven by volume and mix. Its export sales were up 9.41 percent to Rs 175.31 crore as against Rs. 160.22 crores in the corresponding quarter a year ago.
The quarter witnessed growth driven by an improved supply situation, as our factories returned to normal output.
Nestle, which has a 108-year long association with India and nearly six-decade-long manufacturing journey announced to deepen it by announcing further investments.
According to Nestle, this quarter was boosted by double-digit growth in the in-home consumption of its key brands such as Maggi Noodles, Maggi Sauces, Kitkat, Nestle Munch, Nescafe Classic, and Nescafe Sunrise.
The Indian market was ranked at number 13 in terms of contribution to Nestlé’s global revenue in 2019.