New Delhi: India has emerged as one of the fastest-growing markets for Swiss food and beverage giant Nestle, with its local subsidiary achieving double-digit growth, as highlighted in Nestle India's latest annual report.
Nestle India, known for brands like Maggi, Kit Kat, and Nescafe, is focusing on leveraging existing strengths and investing in new opportunities for long-term value. Notably, India has become the largest market globally for Maggi and the second-largest for Kit Kat.
The latest annual report stated "Penetration, premiumisation, and innovation, along with disciplined resource allocation, have been crucial in driving growth, making India one of Nestle's fastest-growing markets globally.
As per the report, the company’s chairman and managing director Suresh Narayanan was paid a whopping 29.4 crore.
In 2023, sales of innovative products in India surpassed six percent, up from three percent in 2018. Nestle's export business also showed strong performance despite challenges like food inflation and volatile commodity prices, particularly in coffee and cocoa.
Additionally, with a new factory underway in Odisha, Nestle reaffirmed India's significance, planning to invest approximately Rs 7,500 crore between 2020 and 2025 to expand capabilities with a focus on growth and innovation, according to Chairman & Managing Director Suresh Narayanan.
Notably, as per reports, Nestle India will continue paying a royalty of 4.5 percent of net sales to its parent company, following shareholder rejection of a proposed increase. The board had previously approved a gradual hike to 5.25 percent over five years, but this was overturned by shareholders. The current royalty rate is lower than that of other multinational corporations in India.
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