Budget 2020

Nestle India to invest ₹2,600 cr. over 3-4 years

Net falls 1.4% for July-Sept. quarter

Nestle India, which posted a 1.4% decline in net profit for the quarter ended September, on Friday said it planned to invest about ₹2,600 crore in India over the next 3-4 years to add to manufacturing capacity.

“We plan to invest ₹2,600 crore over the next 3-4 years to augment our existing manufacturing capacities as well as towards our new under-construction ‘state-of-the-art’ factory in Sanand, Gujarat,” said Suresh Narayanan, CMD, Nestle India.

Net profit for July-September stood at ₹587 crore. Sequentially, however, net profit grew almost 21% from the April-June quarter.

Revenue from operations stood at ₹3,541.7 crore during the quarter, rising from ₹3,215.8 crore in the year-earlier period. The company follows the January-December financial year.

Supply boost

Mr. Narayanan added that the quarter witnessed growth driven by an improved supply situation as Nestle’s factories returned to normal output. He pointed out that boosted by an increase in in-home consumption, key brands such as Maggi Noodles, Maggi Sauces, Kitkat, Nestle Munch, Nescafe Classic and Nescafe Sunrise witnessed double-digit growth.

“We continued our strong performance in the e-commerce channels, which grew by 97% and now contribute about 4% of domestic sales,” he added.

The board of directors declared an interim dividend of ₹135 per share.