Nestlé India will invest ₹5,000 crore over the coming years to boost manufacturing capacity, introduce new product lines, and enhance sustainability across its operations, according to the company’s FY 2024-25 Annual Report released Tuesday. The investment spans all existing factory locations and aligns with the company’s long-term growth and premiumisation strategy.
The fast-moving consumer goods (FMCG) major, known for brands like Maggi, Nescafé, KitKat, and Munch, is also constructing its tenth plant in Khordha, Odisha, which will focus entirely on the company’s food portfolio.
“This not only demonstrates our focus on Indian consumers but also reinforces our commitment to ‘Make in India” said outgoing Chairman and Managing Director Suresh Narayanan in his final address to shareholders. Narayanan, who will retire on July 31 after nearly a decade in the role, will be succeeded by former Amazon India executive Manish Tiwary on August 1.
The company reported its highest-ever annual capital expenditure in FY25 at ₹2,004.4 crore. Nestlé India’s capex has risen sharply over the past decade, from 1.8% of sales in 2015 to 10% in FY25—mirroring its broader strategy of capacity building and market diversification.
The investment will cover all product categories, with special emphasis on foods, chocolates, and beverages. The Khordha facility is expected to significantly boost Maggi production capacity, reinforcing India’s position as the largest market for the brand globally. India is also Nestlé’s second-largest market for KitKat.
Premiumisation continues to be a major focus area. “We have launched over 150 new products since 2015, which now contribute 7% to our sales,” Narayanan noted. He highlighted that revenue has grown at a CAGR of 10.3% since 2015, while profit from operations has expanded at 13.5%.
The company’s rural and semi-urban strategy, dubbed the “RUrban” model, has expanded distribution touchpoints to 28,240 since its launch in 2019. Nestlé India now reaches approximately 209,050 villages and has added 1.3 million new retail outlets since 2016.
Its distribution strength has also seen long-standing partnerships—around 40% of its distributors have been with the company for over a decade. E-commerce now contributes 8.6% to sales, with quick commerce making up nearly 45% of that share.
Nestlé India’s confectionery segment has tripled in the last ten years, with brands like Munch and Milkybar doubling their performance. With this aggressive investment and market expansion plan, the company aims to further cement its leadership in India’s packaged foods sector under the new leadership of Manish Tiwary.