Nestle to invest Rs600 crore in Indian expansion
27 Sep 2008
Mumbai: Swiss foods giant Nestle plans to invest Rs600 crore in its Indian subsidiary in 2009 – double the amount being invested in the current year, its global chairman Peter Brabeck-Letmathe said.
''We will invest as much as strategically sound for the Indian market,'' he said, adding, that the company plans to focus more on high-margin businesses in the health and wellness space.
''The investment would go in new research and development, advertising and capacity building,'' the company chairman and managing director Martial Rolland told a press conference.
''There is no envelope or limit. In the years to come, there will be no limit to our investments in India and we are willing to invest as much as is strategically and economically sound. The board has assured all financial resources; whatever Nestle India needs to continue to serve the consumer,'' he added.
Brabeck, currently in India with the rest of the Nestle board for the first board meeting in India of the Vevey, Switzerland-based company, outlined health and wellness areas as big growth areas for overseas expansion.
India is one of the fastest growing markets for Nestle worldwide. The company's sales in India grew by 25 per cent in the first half of 2008 with the country contributing 1.5 per cent of its global turnover.
Nestle India had posted its highest sales in the January-March 2008 quarter having crossed Rs1,000 crore in net sales, fuelled by better economies of scale and an improved product mix. Net sales for the quarter had gone up to Rs1,090.9 crore - a 26.4 per cent increase over the year-ago period. Close to one-third of Nestle's turnover comes from developing markets.
Brabeck is credited with transforming Nestle's product focus from being an agro-based company to a health and wellness one.