Latest news with #SureshNarayanan
Time of India
a day ago
- Business
- Time of India
Maggi crisis among career's greatest challenge: Nestle India MD Suresh Narayanan
Packaged foods maker Nestle India 's chairman and managing director Suresh Narayanan called out India as a market with a mix of ' inflationary pressures and unexpected opportunities,' in his last letter to the company's shareholders. Narayanan , associated with Nestle for over 26 years, will retire from the India role on July 31 this year, to be succeeded by former Amazon India top boss Manish Tiwary. "We live in capricious times, inflationary pressures , muted consumer demand , tightening of the wallet - wrapped up in a decade of challenges and unexpected opportunities,' Narayanan wrote in the company's just released annual report for 2024-25. Noting that 'volatilities will come and go', Narayanan said his first 100 days as Nestle India chairman 'were one of the greatest challenges of his career'. In 2015, Nestle's mainstay brand, Maggi instant noodles, was banned by food regulator FSSAI on allegations of some samples of Maggi containing lead in excess of permissible limits. The brand was cleared by authorities subsequently and was restored back on shelves, but the controversy took a huge toll on Maggi and the entire instant noodles category that year. Narayanan noted that now India is the world's largest market for the Maggi brand, as the company navigated 'the black swans and gray rhinos'. The maker of Maggi noodles and Nescafe coffee reported a 5.2% year-on-year decline in standalone quarterly net profit at Rs 885 crore for the March-April '25 quarter, impacted by commodity costs. The company's domestic sales touched a quarter high at Rs 5,235 crore, up 4.2% from a year ago, with revenue from operations up 4.5% y-o-y to Rs 5,504 crore. The company said it invested around Rs 6,500 crore between 2020 and 2025 to develop new capabilities and capacity. Narayanan said Nestle added 1.3 million more retail outlets last year, with presence in close to 209,050 villages. On brand reach, he said Nescafe brought more than 43 million households into the coffee category, confectionery tripled its business in the last decade and that the prepared dishes and cooking aids business doubled the Maggi franchise in India. Nestle's capex has gone up from 1.8% of sales in 2015 to 10% in the FY 2024-25, he said. The past decade has seen Nestle's revenue grow at a CAGR of 10.3% and profit from operations higher by 13.5%.
Time of India
2 days ago
- Business
- Time of India
'Maggi crisis was one of the greatest challenges of career'
NEW DELHI: The Maggi crisis, which unfolded in June 2015 and led to a nationwide ban of the popular instant noodles, was "one of the greatest challenges" of my career, said Suresh Narayanan , chairman and MD of Nestle India, said in his final letter to shareholders before his retirement on July 31. Narayanan, who took over as the company's CMD in 2015, is recognised for rejuvenating the company's flagship brand Maggi, after the FSSAI (Food Safety and Standards Authority of India) raised concerns about 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 added. In his letter, Narayanan highlighted the decade's achievements, noting that Nestle India's capex increased from 1.8% of sales in 2015 to 10% in 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. The company achieved a CAGR of over 10% in revenue and 21% in net profit over 2015-2025. Its revenue in FY24-25 stood at Rs 20,100 crore and net profit at Rs 3,300 crore. "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,'' Narayanan said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days 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
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Business Standard
2 days ago
- Business
- Business Standard
Nestle India's permanent employee count down sharply 3.8% in FY25
The number of permanent employees in Nestle India fell 3.8 per cent in FY25, though the maker of Maggi and KitKat increased its capex and is investing in new capabilities and capacities. The total number of on-roll employees of Nestle India was 8,419 in FY25, as compared to 8,736 a year ago. The increase in the median remuneration of employees in last fiscal year was 4.9 per cent. "The median percentage increase made in the salaries of employees other than the managerial personnel was 5.2 per cent while the increase in the remuneration of managerial personnel was 3.5 per cent," said Nestle India. Nestle India, which reported over Rs 20,000 crore sales in FY25, increased capex level from 1.8 per cent of sales in 2015 to 10 per cent of sales in FY25, said its outgoing Chairman Suresh Narayanan, while addressing the shareholders. The maker of Maggi, Nescafe and KitKat has already announced a succession plan, appointing Manish Tiwary as a Director and Managing Director for a five-year term effective August 1, 2025. Tiwary has been appointed as Managing Director (Designate) from February 1, 2025 and as Key Managerial Personnel from April 24, 2025. For the two months of service, Tiwary was paid a remuneration of nearly Rs 3 crore. "During financial year 2024-25, Manish Tiwary was paid a remuneration of Rs 29.94 million. Additionally, as per the terms agreed by the Board of Directors with Manish Tiwary, he was given a lump sum payout of Rs 151.96 million, with applicable tax deducted at source, at the time of joining the company to compensate for his long-term incentives loss...," said Nestle India. In FY25, total remuneration of CMD Suresh Narayanan was at Rs 23.47 crore.
Mint
2 days ago
- Business
- Mint
Nestle India's on-roll employee count down 3.8% to 8,419 in FY2025 amid capex investment plans
Nestle India's total number of permanent employees dropped by 3.8 per cent as of the financial year ended 2024-25 amid the company's increased capital expenditure (capex) plans to invest money into new capabilities and capacities, reported the news agency PTI on Tuesday, 3 June 2025. The agency report highlighted that Nestle India's on-roll employees were at 8,419 in the 2024-25 fiscal year, compared to 8,736 employees in the same period a year ago. One of the biggest fast-moving consumer goods (FMCG) brands' increase in the median remuneration of employees was at 4.9 per cent in the 2024-25 fiscal, as per the news report. 'The median percentage increase made in the salaries of employees other than the managerial personnel was 5.2 per cent while the increase in the remuneration of managerial personnel was 3.5 per cent,' said Nestle India, cited by the news agency. The company appointed Manish Tiwary as the managing director for a five-year period effective 1 August 2025. Tiwary was paid a salary of nearly ₹ 3 crore for two months of service after his appointment as a key managerial personnel on 24 April 2025. 'During financial year 2024-25, Manish Tiwary was paid a remuneration of ₹ 29.94 million. Additionally, as per the terms agreed by the Board of Directors with Manish Tiwary, he was given a lump sum payout of ₹ 151.96 million, with applicable tax deducted at source, at the time of joining the company to compensate for his long-term incentives loss,' said the company, cited in the news report. Nestle India is one of the largest FMCG brands in India. Its popular daily consumable products include Maggi, Nescafe coffee, Everyday milk powder, and KitKat. The company reported more than ₹ 20,00 crore in sales for the financial year ended 2025, with an increased capex level from 1.8 per cent of the sales in FY2015, to 10 per cent of the sales in FY2025, according to the outgoing Chairman Suresh Narayanan, cited in the agency report from his shareholder's address. The company's total income was at ₹ 20,260.42 crore for the financial year ended 2024-25. '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, prepared dishes and cooking aids,' said Narayanan, according to a Mint report. In the financial year 2024-25, the company's CMD, Suresh Narayanan, was paid ₹ 23.47 crore, according to the agency report. Nestle India shares closed 0.73 per cent lower at ₹ 2,390.65 after Tuesday's stock market session, compared with ₹ 2,408.20 at the previous market close.
