Nestle, which operates 9 plants employing roughly 6,000 people across the country, is looking at new locations to expand manufacturing capacity.
Mark Schneider, CEO of Nestle, while sharing the investment plans for the Indian market, said the Swiss food & beverage company has an investment plan of Rs 5,000 crore through 2025.
Switzerland-headquartered food & beverage conglomerate Nestle is planning to invest Rs 5,000 crore in India in the next three-and-a-half years, according to the company CEO Mark Schneider. The FMCG company, which has around 2,000 brands worldwide, says that this will help Nestle to accelerate its core business in India and leverage new growth opportunities.
This Rs 5,000 investment will be used on capital expenditure (Capex), setting up new plants, acquisitions and expansion of the product portfolio of the company. The investment, subject to clearances and approvals, would also help in creating more job opportunities in the domestic market.
Schneider, while sharing the investment plans for the Indian market, said the Swiss food & beverage company has an investment plan of Rs 5,000 crore through 2025. Nestle, which operates 9 plants employing roughly 6,000 people across the country, is looking at new locations to expand manufacturing capacity.
Schneider said, “When you look into the investment in this country and the investment plan through 2025, 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 further added that Nestle, which is present in India for over 110 years, started its manufacturing activity in the early 1960s. Interestingly, India is among Nestle’s top ten markets.
Schneider said, “In 1961, we started our first manufacturing site and so in that whole time period it has been Rs 8,000 crore and now in the next three years, it will be Rs 5,000 crore.”
The company also claims that this investment is not just for accelerating and ramping up Capex, but will also go into development works, brand building and meaningful contributions on the ground.
Suresh Narayanan, Chairman and Managing Director of Nestle India, said that accelerating the core business of the company would be a focus area. He said, “It is definitely a highly accelerated plan that we are looking at.”
As per Narayanan, this plan has three pivots such as continuing the strong momentum of growth that the company has had in the last 22 quarters. The second part is to do it sustainably, and Nestle has taken “significant steps” in that direction.
“And the third part is really to leverage new opportunities for growth, whether it is plant-based proteins, healthy ageing, healthy snacking, leveraging some of the Indian grains into products for the company,” said Narayanan.
Schneider further added that Nestle India’s business has maintained “consistency at very high levels” for 22 quarters, which is “outstanding” and “truly stunning” and is a complete willingness for “open chequebook” support every step of the way.
The investment would also focus on organic growth and putting money into facilities such as existing factories or research centres. “So, on top of that, if we see interesting opportunities for M&A, we will be very happy to explore those,” Schneider added.
Narayanan, while explaining the investment and capacities details segment-wise, said: “It is going to be secular across categories. It is not going to be in particular categories.” He added, “probably we are looking at new locations for factories as well. It could be a big part of the ambition that has as a company.”
“The ambition to invest Rs 5,000 crore would have been a significant increase in the direct and indirect employment as well,” he added.
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