To capitalize on growth opportunities for its products in India, the Swiss food and beverage giant Nestlé plans to invest Rs 5,000 Cr ($613m) in India by 2025.
Mark Schneider, the chief executive officer of Nestlé, stated that the company’s “accelerated investment plans” will allow for the expansion of its product portfolio, the establishment of new production facilities, the enhancement of its brand, and the possibility of new acquisitions.
The funding will benefit all product categories offered by Nestlé in the country, including coffee. In India, Nestlé sells a variety of Nescafé retail products, including the Nescafé Classic, Gold, and Sunrise blends. It also manufactures and distributes the app-enabled coffee maker by É by Nescafé.
“I believe India to be in an extremely advantageous position. Obviously, inflation is a concern, but the underlying volume demand is so robust due to a growing middle class and rising incomes. That outweighs some of the potential inflation-related concerns. Overall, as a business, we are committed to pricing products responsibly and keeping them affordable for all segments of society. But I believe India is less affected than many other large markets due to the robust economic growth we are witnessing,” said Schneider.
In 2021, Nestlé India generated revenues of Rs 14,709 Cr ($1.8 billion). Currently, the division operates nine manufacturing facilities in the United States, employing approximately 6,000 individuals.
The investment represents Nestlé’s largest in India since the company began manufacturing operations there in 1961.