Dominance in Instant Noodles
India has become Nestle’s largest market for its Maggi brand globally, with over six billion servings sold in FY24. This milestone is attributed to the introduction of new products such as Oats Noodles, Korean Noodles, and various masala variants priced at an affordable Rs 10. The Prepared Dishes and Cooking Aids business, driven by a balanced product mix and strong consumer engagement, has shown robust growth. Nestle ensures compliance with FSSAI (Food Safety and Standards Authority of India) regulations, maintaining high standards of food safety and quality for all its products.
Maggi’s Comeback and Market Share
Maggi’s significant recovery followed a five-month ban in 2015 due to allegations of excessive lead content. Although Maggi has not regained its pre-crisis market share of over 70% in the instant noodles segment, it continues to hold a strong position despite intensified competition from new entrants.
KitKat’s Stellar Performance
Nestle India sold 4.2 billion KitKat fingers, making India the second-largest market for the brand globally. New product launches, an expanded distribution network, and innovative brand activations supported this growth, positioning KitKat as a star performer in Nestle India’s portfolio.
Strategic Investments and Expansion
Nestle is reinforcing its commitment to India by setting up its tenth factory in Odisha and investing approximately Rs 7,500 crore between 2020 and 2025. This investment aims to develop and expand new capabilities, focusing on sustained growth and innovation. Over the past eight years, Nestle India has launched over 140 new products, significantly contributing to sales.
Focus on Innovation and Rural Expansion
Plant-based products present a significant opportunity for Nestle India, which has a 112-year history in the country. Through its RUrban journey, Nestle India has extended its direct coverage to over 200,000 villages, highlighting its commitment to rural markets.
Royalty Payments and Corporate Governance
After shareholders rejected a proposal to increase it, Nestle India will continue paying a royalty of 4.5% of net sales to its parent company, Societe des Produits Nestle SA. The company emphasizes that its royalty rate is lower compared to other MNCs in India.
