Nestlé India to Invest INR 4,200 Cr by 2025; Investments Include 10th Odisha Factory and Ramping Up Portfolio Production Earlier this month, the company received the nod from the Industrial Promotion and Investment Corp. of Odisha Ltd (IPICOL) to build its 10th state factory.
By Entrepreneur Staff •
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
On Friday, Nestlé India announced it was set to invest INR 4,200 crore by 2025, which includes setting up a tenth factory in Odisha and increasing the production of its chocolate, coffee, and noodles portfolio.
"Our investments in Make-In-India have been significant. From 2020 until the first half of 2023, we have already spent about ₹2,100 crore on the augmentation of manufacturing capabilities. Now, another ₹4,200 crore will be invested from 2023 to 2025. This includes about ₹894 crore of investments in the new factory in Odisha," shared Suresh Narayanan, Chairman and Managing Director, Nestlé India, during a media roundtable. Nestlé India is a strong advocate when it comes to pushing for 'Make in India'.
He further added that the INR 2,100 crore has been utilised equally between investments in culinary, chocolates and confectionaries, and nutrition and beverages. Earlier this month, the company received the nod from the Industrial Promotion and Investment Corp. of Odisha Ltd (IPICOL) to build its 10th state factory.
Narayanan further added that the company is optimistic as it is spotting opportunities to sell both mass and premium products in the country, "The next phase of growth is not just going to come from strengthening our portfolio in urban India but also in semi-urban and rural India. We are seeing growth not just in mega towns and metros but also in Tier 1-6 towns," he said. Nestle is focusing on growing its presence in semi-urban and rural regions across 12-13 states by offering relevant packs. Currently, rural markets contribute 20 per cent to the company's sales.
Meanwhile, for its premium portfolio, the packaged food brand is strengthening its strategies across various categories, including chocolates and coffee. "While a third of our portfolio is price-point-led, wherever we have opportunities for premiumisation, we are doing it aggressively," he added.
Earlier this week, Nestlé India released its quarter two reports, showing a rise in profits by 32 per cent. The FMCG giant follows a January-December financial calendar, with its Q2 concluding on June 30, 2023.
As per the reports, its net sales increased by 15.02 per cent to INR 4,619.50 crore during the period, as against INR 4,015.98 crore in the Q2 of last fiscal year. Domestic sales were up by 14.6 per cent to INR 4,420.77 crore against INR 3,857.56 crore in Q2 2022, while exports rose by 25.44 per cent to INR 198.73 crore, as against INR 158.42 crore in the same period. Its key brands, KitKat, Nescafe and Maggi, continue to be popular among the consumers and perform well.
