Nestle CEO announces £500 mn investment in India

Wednesday 28th September 2022 06:36 EDT
 

Global food & beverage conglomerate Nestle SA plans to invest £500 million in India by 2025, its CEO Mark Schneider announced recently. The move will help the company to accelerate its core business in the country and leverage new opportunities for growth. Nestle India presently operates nine factories employing roughly 6,000 people.

The investment would be on capex (capital expenditure), setting up new plants, acquisitions and expansion of the product portfolio of the company. The investment, which would be subject to clearances and approvals, will also help in creating more job opportunities in the domestic market.
 
"When you look into the investment in this country and the investment plan through 2025, we are talking about £500 million and that compares to £800 million over the last 60 years when we started manufacturing in this country," he said.
 
Nestle is present in India for over 110 years but started its manufacturing activity in the early 1960s, Schneider added. "In 1961, we started our first manufacturing site and so in that whole time period it has been £800 million and now in the next three years it will be £500 million," he said.
 
This investment is not only for accelerating and ramping up capex alone but also goes into a whole lot of development works, brand building and meaningful contributions on the ground, Schneider said.
 
Nestle India chairman and managing director Suresh Narayanan said that accelerating the core business of the company would be a focus area. "It is definitely a highly accelerated plan that we are looking at. This has three pivots" such as continuing the strong momentum of growth that the company has had in the last 22 quarters," he said.

Nestle India's revenue in 2021 stood at £147.09 million. It had last invested around £70 million to open its plant at Sanand in Gujarat to manufacture a range of popular instant noodles Maggi.


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