Nestlé India to Invest Rs 5,000 Crore to Boost Manufacturing and Expansion

Odisha, Jun 4 (KNN) Nestlé India has announced plans to invest approximately Rs 5,000 crore in the country over the coming years to meet rising demand and support future growth.

This was revealed in the company’s Annual Report for 2024–25, released on Tuesday.

The investment will focus on increasing manufacturing capacities, productivity, sustainability, and new product lines across its existing nine factories.

A tenth facility is currently under construction in Khordha, Odisha, which will primarily support its food portfolio, including the popular Maggi products.

Outgoing Chairman and Managing Director Suresh Narayanan, in his final letter to shareholders, highlighted the company’s growing commitment to India.

Capital expenditure as a percentage of sales rose from 1.8 per cent in 2015 to 10 per cent in FY25, with Rs 2,004.4 crore spent in the past financial year — the highest in a decade.

“This not only demonstrates the focus on Indian consumers but also our commitment to ‘Make in India’,” said Narayanan, who will retire on July 31. Former Amazon executive Manish Tiwary will take over as CMD on August 1.

Nestlé India’s revenue has grown at a compound annual rate of 10.3 per cent since 2015, with profits from operations rising by 13.5 per cent.

The company has launched over 150 new products since then, contributing to 7 per cent of overall sales.

Nestlé’s rural-urban (‘RUrban’) strategy has significantly expanded its reach, now covering over 209,000 villages and 28,240 rural distribution points. India has become the largest market for Maggi and the second-largest for KitKat globally.

With its confectionery segment tripling over the past decade and growing e-commerce channels, Nestlé India is positioning itself for sustained growth and deeper market penetration.

(KNN Bureau)