Nestle, the world’s largest Switzerland-based food and drink processing corporation, is planning to invest ₹5,000 Cr in India. The company aims to expand its business operations and is ready to build factories and research centers across India till 2025. This decision is very much related to the fact of India advancing as Asia’s third-largest economy which is stepping up as one of the largest food and beverages market potential, this statement is somewhat similar to what Mark Schneider, Company’s Chief Executive said on Friday.
Nestle, Expanding Business Operations In India
As per Schneider, who was on a 10-day trip in India, “ new investments will also be used to build brands”.
“The investment I talked about—that’s CAPEX, that’s us putting money into our facilities, be it factories or research centers. On top of that, if we see interesting opportunities for mergers and acquisitions, we would be very, very happy to explore those,” he added. “When you look at the investment in this country and the investment plan through 2025—we’re talking about ₹5,000 crores, and that compares to ₹8,000 crores over the last 60 years when we started manufacturing in this country”, he said.
Nestle is going to double its potential in India, this idea is powered by the fact that India is stepping up as the world’s third-largest economy, during this era of surgeon inflation, with extraordinary market depth. “While food companies are more resilient to price shocks, sustained high inflation may force consumers to trade down to cheaper products.”
“Globally, we are facing a bad situation of continued inflation. You saw just this week from so many central bank decisions that clearly, inflation continues to be a pretty major concern. And, what we watch country by country, market by market is to what extent; continued inflation at some point has an impact on people’s willingness to buy, and the answer to that is different by country and by category”, further added.
Furthermore, the company has strategized to rival domestic giants like Hindustan Unilever and ITC LTD along with TATA Consumer Products.
“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 & MD, Nestle India