Nestle to invest ₹5000 cr to build capacity, brands in India: Mark Schneider

NEW DELHI: Nestle, the world’s biggest packaged food company, plans to invest 5,000 crore in India by 2025, said the company’s chief executive officer Mark Schneider. The fresh investments point to the company’s plans to accelerate and ramp up business in the country, Schneider said at the company’s India head office in Gurugram.

Schneider was on a week-long visit to India, which the company counts among its top 10 markets globally.

“When you look at the investment in this country and the investment plan through 2025, we’re talking about 5,000 crore and that compares to 8,000 crore over the last 60 years when we started manufacturing in this country,” he said.

Investments will go into expanding capacity as well as building the company’s brands in the market.

Schneider said Nestle has been in this market for 110 years, but until the early 1960s it was essentially a sales and marketing organization. “I think in 1961 we started our first manufacturing site and so in that whole time period it’s been 8,000 crore. And now the next three years it’s 5,000 crore. So that gives you a sense of things accelerating, ramping up. That’s the high level one, but it’s not capex and investment alone. I think it also goes into a whole lot of development items and brand building and you know meaningful contributions on the ground,” he said.

The maker of Maggi noodles will scale capacity across categories, said top executives at the company.

Nestle India has nine factories in the country. The investment will also help the company create “significant” direct and indirect job opportunities.

“Look it is going to be secular across a categories so it’s not going to be in particular 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,” Suresh Narayanan chairman & managing director, Nestle India, said.

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