Latest news with #NestléIndia
Time of India
9 hours ago
- Business
- Time of India
Maggi crisis daunting, among career's greatest challenge: Nestle India CMD
NEW DELHI: FMCG major Nestle India achieved a CAGR of over 10% in revenue and 21% in net profit over the 2015-2025 decade, led by chairman and managing director Suresh Narayanan at the helm. Over the years, Nestlé India's iconic brands—Maggi, Nescafé, and KitKat—have driven sustained growth, leading to FY24-25 revenue of Rs 20,100 crore and net profit of Rs 3,300 crore. In his final letter to the company's shareholders before his retirement on July 31, Narayanan highlighted the decade's achievements, noting that capex increased from 1.8% of sales in 2015 to 10% in FY 24-25. ``This not only demonstrates the focus on Indian consumers, but also our commitment to manufacture in India and 'Make in India' as a theme'', he said. Narayanan will be succeeded by Manish Tiwary, director at Amazon Digital Services as the new MD. Reflecting on his first 100 days as CMD of Nestlé India, Narayanan said, they were ``one of the greatest challenges'' of his career, as the Maggi crisis unfolded in June 2015 and led to a nationwide ban of the popular instant noodles. Narayanan, who took over as the company's CMD in 2015, is recognized for rejuvenating the company's flagship brand, Maggi, after the FSSAI (Food Safety and Standards Authority of India) raised concerns about the high levels of lead and monosodium glutamate in the product, leading to a temporary ban and significant backlash for the brand. Maggi noodles went from market leadership to near extinction and recovered 60% of its market share within months of its relaunch, he noted. Over the years, the company has expanded into new categories including breakfast cereals and pet care, despite a market challenged by "inflationary pressures and muted consumer demand''. "Our pace of innovation is now four times faster than it was a decade ago", he says. In 2015, many considered us to be solely a Maggi noodles company. Since then we recalibrated and rejuvenated the portfolio launching over 150+ new products that have contributed to 7% of sales'', he added. During the decade, he said, ``Together we navigated the black swans and gray rhinos. And seized the rising India opportunity'', he adds. In the same period, the company's market capitalization grew nearly 4x and the shareholder return CAGR was 17%. ``We were once seen as an urban company with a limited portfolio, but through penetration-led volume growth strategy rolled out in 2015, we now have access to more households and more consumption occasions. Through relentless consumer cluster-based and RUrban strategy, our brands reach two out of three households'', he adds. The RUrban strategy began in 2019, and has increased RUrban distribution touchpoints to 28,240. Today the company has a presence in approximately 209,050 villages, and has added 1.3 million more retail outlets since 2016 with the highest gains amongst peers in 2024, the annual report says. The flagship business--prepared dishes and cooking aids, which contributes nearly 32% of the revenue, has doubled the Maggi business in India. India is also the largest market worldwide for Maggi, with sharpened and increased pace of innovation and premiumization. Once a muted business, confectionery has tripled its business in the last 10 years. Kitkat doubled its market share and became the fastest growing brand within the chocolate category here. Today, India is the second largest market for Kitkat globally, a decade ago it was at number 10. Munch and Milkybar have also doubled their business. In the last decade, Nescafe strengthened its leadership position by gaining market share and bringing over 43 million households into the coffee category, by expanding its reach both at the top and bottom. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
12 hours ago
- Business
- Mint
Maggi crisis to capex boom: Narayanan's decade at Nestlé India
New Delhi: Packaged foods maker Nestlé India Ltd.'s capital expenditure has surged nearly fivefold as a percentage of its sales in the past decade, driven by greater demand for its products and its ability to manufacture more in India, according to its outgoing chairman and managing director Suresh Narayanan. Nestlé India's capex has risen from 1.8% of sales in 2015 to 10% of sales in the financial year ended March 2025, Narayanan said in the company's annual report released Tuesday. In fiscal 2025, the maker of Maggi noodles and KitKat chocolate reported a total income of ₹ 20,260.42 crore. 'As a consequence of robust growth, your company is investing in new capabilities and capacities, by increasing product lines in existing factories and setting up the Sanand factory in Gujarat, for confectionery and prepared dishes and cooking aids,' said Narayanan, who is set to retire on 31 July. 'On the anvil is the 10th citadel of manufacturing that is coming up in Odisha. This not only demonstrates the focus on Indian consumers but also our commitment to manufacture in India and 'Make in India' as a theme.' Narayanan joined Nestlé India as managing director in August 2015 following the company's Maggi crisis, when the brand disappeared from supermarket shelves overnight after allegations of high levels of monosodium glutamate (MSG). The company, which denied adding MSG, had to recall the noodles. 'It was a decade that brought both opportunities and challenges. Times that were unpredictable, yet promising,' he said in his note to shareholders in the annual report. 'Together, we navigated the black swans and gray rhinos. And seized the rising India opportunity. In the unpredictable dance of light and shadow, true resilience was forged.' Narayanan said his first 100 days as chairman and MD were among the most challenging of his career as he confronted the "daunting" Maggi crisis. 'Maggi noodles went from market leadership to near extinction and recovered 60% of its market share within months of its relaunch. At that time, a young brand manager suggested, 'why don't we relaunch Maggi online?' I asked about the risk of failure. After a quick assessment, we relaunched Maggi online and the rest is history—60,000 boxes were sold in less than 5 minutes on Snapdeal,' he said. India is the largest Maggi market globally. A decade ago, the company was also highly reliant on its Maggi portfolio. "Since then, we recalibrated and rejuvenated the portfolio, launching over 150 new products that have contributed to 7% of sales," he added. Nestle sells products such as chocolates, milk, ketchup, cooking aids, nutrition products for infants, cereals, curd, noodles, coffee and pet food in India. It has been tapping more premium consumption opportunities. Last year, it partnered Dr. Reddy's Laboratories Ltd, investing ₹ 705.6 via a joint venture to sell wellness and nutrition products in India. More recently, it has expanded its coffee and confectionery business in India. The country is also the second-largest KitKat market globally. It also opened its maiden Nespresso coffee boutique in India this year. 'We were once seen as an urban company with a limited portfolio, but through a penetration-led volume growth strategy rolled out in 2015, we now have access to more households and more consumption occasions…Our pace of innovation is now four times faster than it was a decade ago,' he said. In 2023, the packaged foods maker had said it would invest ₹ 4,200 crore by 2025 to expand the manufacturing capacity of its noodles, coffee and chocolates portfolio. This includes roughly ₹ 900 crore of investment in an upcoming factory in Odisha to manufacture prepared dishes and cooking aids. Nestlé India set up its first manufacturing facility at Moga (Punjab) in 1961. Its ninth facility came up in Sanand (Gujarat) in 2021. Nestle competes with ITC Ltd and Britannia Industries Ltd in India. "We have added 1.3 million more retail outlets since 2016, with the highest gains amongst peers in 2024,' Narayanan said. 'The RUrban strategy began in 2019 and has increased RUrban distribution touch-points to 28,240. Today, we are present in approximately 209,050 villages.' Manish Tiwary is set to take over as managing director, succeeding Narayanan, on 1 August.
Time of India
27-05-2025
- Business
- Time of India
Nestlé India's outgoing CEO Narayanan weathered the Maggi storm; Tiwary must tackle slowing growth
Nestlé India's outgoing CEO Narayanan weathered the Maggi storm; Tiwary must tackle slowing growth Manish Tiwary (left) will be the MD of Nestle India on 1st of August 2025, Suresh Narayanan (right) current Chairman and MD of Nestle India; Collage by Mohommad Arshad Synopsis Come June 23, Nestlé India will be moved out of the Sensex 30 to Sensex Next 30. The company has remained flat for the last one year. It has even underperformed the Nifty FMCG Index in the past 5 years. The shift captures the woes faced by the company and the sector. An overall revival seems like a long-term story. PRAVIN PALANDE By VARSHA SANTOSH 8 Mins Read, May 28, 2025, 04:55 AM IST SHARE THIS NEWS Close Font Size Abc Small Small Abc Normal Normal Abc Large Close When the world's biggest food and beverages maker brings in a new chief executive to its Indian operations, some challenges come along. Nestlé, which successfully battled the Maggi image problem with Suresh Narayanan a decade ago, is now bringing in Manish Tiwary and he not only needs to fix the multi-year growth slowdown, but also convince index managers that the makers of KitKat chocolates deserve to be a part of the elite index. Nestlé India
Economic Times
27-05-2025
- Business
- Economic Times
Nestlé India's outgoing CEO Narayanan weathered the Maggi storm; Tiwary must tackle slowing growth
When the world's biggest food and beverages maker brings in a new chief executive to its Indian operations, some challenges come along. Nestlé, which successfully battled the Maggi image problem with Suresh Narayanan a decade ago, is now bringing in Manish Tiwary and he not only needs to fix the multi-year growth slowdown, but also convince index managers that the makers of KitKat chocolates deserve to be a part of the elite index. Nestlé India
Economic Times
27-05-2025
- Business
- Economic Times
What Nestlé India's Sensex exit means
Nestlé India is moving out of Sensex. Can it stay in investors' mind? Nestlé India has remained flat for the last one year. It has even underperformed the Nifty FMCG Index in the last five years. The shifting of the stock from Sensex 30 to Sensex Next 30 does capture some of the woes faced by the company and the sector. And an overall revival seems like a long-term story. ONGC squandered its future once. Can it be different this time? When India FONT SIZE SAVE PRINT COMMENT Refer & Earn
