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Nestlé's FY24 report highlights India's pivotal role in the company's global market. India emerges as the largest consumer of Maggi products and ranks as the second largest market for Kit Kat. This underscores the country's significant contribution to Nestlé's sales, reflecting strong consumer demand and market presence for these popular brands in India. The report showcases India's importance in Nestlé's overall growth strategy and product success.
Boston Brand Media brings you the latest news - Moreover, its export business saw robust growth alongside its domestic market.
Nestlé India, a subsidiary of the Swiss global food and beverage giant, has reported double-digit growth, underscoring the company's focus on market penetration, premiumisation, and innovation.
The latest annual report indicates that India has become the largest global market for Maggi and the second-largest for Kit Kat, the popular chocolate wafer brand.
Product sales are projected to exceed 6% in 2023, a significant increase from 3% in 2018. Nestlé's export business also demonstrated strong growth, with all key brands and product groups experiencing consistent growth despite challenges like food inflation and volatile commodity prices.
The company plans to invest approximately Rs. 7,500 crore between 2020 and 2025 to develop new capabilities and expand existing ones, aiming for sustained growth and innovation. Additionally, Nestlé India has announced it will continue to pay royalties to its parent company at the existing rate of 4.5% of net sales, following the rejection of a proposal to increase the rate by shareholders.
In April, the board approved a gradual increase in royalty payments to the parent company by 0.15% per year for the next five years, raising them to 5.25% of net sales. Notably, Nestlé India's general license fee rate remains comparatively lower than that of other multinational corporations in India.
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Source: AFAQS
