According to CEO Mark Schneider, Nestle intends to invest Rs 5,000 crore in India by 2025

According to Nestle SA's CEO Mark Schneider on Friday, the multinational food and beverage corporation expects to invest Rs 5,000 crore in India over the next three and a half years by 2025.

The action will assist the organisation in leveraging fresh growth potential and accelerating its core business in the nation.

The investment would go into capex (capital expenditures), the construction of new facilities, acquisitions, and the growth of the company's product line. The nine facilities that Nestle now runs in India are also looking at additional places to establish production capacity.

The investment will aid in increasing job possibilities in the local market and is subject to certifications and approvals.

In a media round table, Schneider revealed Nestle's investment ambitions for the Indian market, one of its top ten markets, saying that the company has a Rs 5,000 crore investment plan until 2025.

When you examine the investments in this nation and the investment plan until 2025, we are talking about Rs 5,000 crore, which contrasts with Rs 8,000 crore over the previous 60 years when we first began manufacturing in this country, the official said.

Despite having been in India for more than 110 years, Nestle just began producing there in the early 1960s, he continued. "We opened our first manufacturing plant in 1961, so during the entire time span, it has been Rs 8,000 crore, and right now, it will be Rs 5,000 crore in the next three years," he said.

According to Schneider, this money is going towards a lot of development work, brand building, and substantive contributions on the ground in addition to accelerating and ramping up cpaex alone.

Suresh Narayanan, chairman and managing director of Nestl India, stated that the company's core business would be accelerated as a priority.

We are looking at a very accelerated agenda, no doubt about it. This pivots three times, he added, including keeping up the company's 22-quarter streak of robust growth. Do it sustainably is the second step, and Nestle has made "major steps" in that regard.

The third step is to take advantage of fresh development prospects, such as those presented by plant-based proteins, healthy ageing, healthy eating, and the conversion of various Indian grains into commercially viable goods, according to Narayanan.

Schneider added that Nestle India's operations have been "consistent at extremely high levels" for 22 quarters, which is "amazing" and "really stunning" and demonstrates a complete willingness for "open chequebook" support at every stage.

The investment would focus on capital expenditures and facilities like current factories or research facilities. In addition, Schneider continued, "If we discover good chances for M&A, we will be quite delighted to investigate those."

Narayanan responded to questions on segment-specific investment and capacity details as follows: "It will apply to all categories and be secular. It won't fall into any certain category." But he also stated, "Most likely, we are also considering new locations for industries. It might make up a significant portion of the company's goals."

At the moment, Nestle India runs nine factories with about 6,000 workers. A large rise in both direct and indirect jobs would have resulted from the intention to invest Rs 5,000 crore, the author claims.

The total revenue for Nestle India in 2021 was Rs 14,709.41 crore. The company most recently spent roughly Rs 700 crore to establish a plant in Gujarat's Sanand to produce a kind of the well-known instant noodles Maggi.