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Nestle To Invest Rs 5,000 Cr In India By 2025

Apart from the capex investment in factories and research centres, the company is willing to explore the opportunities for mergers and acquisitions

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The chief executive of Nestle SA, Mark Schneider, on Friday said that the company will be spending Rs 5,000 crore to build factories and research centres in India till 2025, according to a media report. The move comes as the growing middle class in Asia’s third-largest economy increases spending on food and beverages.

The new investments will in turn be used in building brands, with India being one of the top 10 markets for the Swiss company.

Apart from the capex investment in factories and research centres, the company is willing to explore the opportunities for mergers and acquisitions. In the last 60 years of manufacturing in India, the company has invested Rs 8,000 crore, which will exorbitantly rise to Rs 5,000 crore in its upcoming investment plan through 2025, Schneider told the media.

The world’s largest food company is revamping its operations in India, the world’s fastest-growing economy, to offset the sluggish demand in Western markets impacted by decades-high inflation. 

Although food companies are resilient to price shocks, prolonged high inflation may compel consumers to resort to cheaper products.

In 1912, Nestle introduced importing and selling finished products into the market, trading as Nestle Anglo-Swiss Condensed Milk Co. (Export). The first factory at Moga in Punjab was set up in 1961.

 The company faced its worst crisis in India with the temporary banning of its popular brand of Maggi noodles in 2015. Since then, the company has recovered, with net sales of Nestle India climbing to Rs 14,633.72 crore in 2021 from Rs 8,123.27 crore in 2015.


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