India has solidified its position as the largest market globally for Nestle’s Maggi instant noodles and the second largest for KitKat chocolate wafers, according to Nestle India’s annual report for 2023-24. This remarkable achievement underscores India’s growing significance in Nestle’s global portfolio.
Nestle India reported an impressive surge in sales, with over six billion servings of Maggi noodles sold during the fiscal year, making India the top market for Maggi worldwide. The country also recorded a high double-digit growth rate, positioning it as one of Nestle’s fastest-growing markets globally.
The company’s local subsidiary attributed this success to a strategic focus on market penetration, premiumization, and innovation. “Penetration, premiumization, and innovation, combined with disciplined resource allocation, have been key in driving business, making your company one of the fastest-growing markets for Nestle globally,” Nestle India’s annual report stated.
To cater to the diverse tastes of the Indian market, Nestle has expanded its Maggi product line to include Oats Noodles, Korean Noodles, and various masala variants, all priced at an affordable Rs 10. The Prepared Dishes and Cooking Aids segment saw robust growth, bolstered by a balanced product mix, competitive pricing, and increased volume in Maggi noodles and Maggi Masala-ae-Magic. The brand’s success was further supported by extensive consumer engagement, media campaigns, and attractive activations.
In the confectionery segment, Nestle India reported selling an astonishing 4,200 million fingers of KitKat. The brand’s growth in India was driven by new product launches, an expanded distribution network, and innovative brand activations. “KitKat has emerged as the star performer, making Nestle India the second largest market for the brand globally,” the report highlighted.
Despite previous setbacks, including a five-month ban on Maggi noodles in 2015 due to allegations of excessive lead content, the brand has made a strong comeback. Following a successful relaunch, Nestle has extended Maggi’s presence in the food segment and related categories, although the brand has yet to reclaim its pre-crisis market share of over 70% in the instant noodles segment due to intensified competition.
Nestle is reinforcing its commitment to the Indian market with plans to establish its 10th factory in Odisha. The company has announced a significant investment of approximately Rs 7,500 crore between 2020 and 2025 to develop new capabilities and expand existing ones, with a focus on sustained growth and innovation.
“We are committed to strengthening our presence in India and investing in growth and innovation to continue our success,” said Suresh Narayanan, Chairman and Managing Director of Nestle India, in the report. Over the past eight years, Nestle India has introduced more than 140 new products, with a significant portion of sales in 2023 attributed to these innovations. The company sees substantial potential in plant-based products and is expanding its reach to over 200,000 villages as part of its RUrban initiative.
In addition, Nestle India announced that it will continue to pay royalty to its parent company, Nestle SA, at the current rate of 4.5% of net sales. This follows the rejection of a proposal to increase the royalty rate by shareholders. Nestle India’s board has recommended maintaining the current royalty rate, noting that it is lower compared to other multinational corporations operating in India.
For the fifteen months ending March 31, 2024, Nestle India reported sales of Rs 24,275.5 crore, reflecting the company’s strong performance in one of its most vital markets.