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FMCG giant Nestlé has announced that it will be investing Rs 5,000 crores in India over the next 3.5 years, allowing the company to improve its core businesses and pursue growth opportunities.
For the unversed, Nestlé is one of the largest F&B brands in the world. The Swiss company has been in India since as early as 1912 and has been manufacturing in the country since the setup of its first factory in 1961 in Punjab. The company manages several famous brands such as Maggi, Munch, Milkybar, Nescafé & Nesquik.
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The investment will be on CAPEX, setup of new plants & acquisitions, and expansion of the company's product portfolio. This investment, which will be subject to approvals and clearances will also help in the creation of new job opportunities.
"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. 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," Nestlé CEO Mark Schneider said.
According to the CEO, India is one of the Top 10 markets for Nestlé and the investment is not only for the purposes of ramping up capital expenditures, but it is also for the purposes of development, brand building, and meaningful contributions.
He added that the Indian business had shown "consistency at very high levels" for the past 22 quarters which was "outstanding". So, the investment would be focused on organic growth, CAPEX, and improving existing facilities.
“It (investment) is going to be secular across categories. These are the ambitions that we have as a company, in terms of making it across categories, probably looking at new locations for factories as well," said Suresh Narayanan, Chairman, and MD of Nestle India.
The stock of Nestle India closed at Rs 18,495.90 per share on Friday.
Article by Aman Agarwal.
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