Companies

Nestle India to invest ₹2,600 cr in next 3-4 years

Our Bureau New Delhi | Updated on October 23, 2020 Published on October 23, 2020

NEW DELHI, 20/02/2017: Suresh Narayanan, CMD, Nestle India, during a round table conference in New Delhi on February 20, 2017. Photo: Ramesh Sharma

Net profit for Sept quarter dips a tad to ₹587 cr

Nestle India on Friday said it plans to invest ₹2,600 crore over the next 3-4 years to ramp up its manufacturing capacities in the country. The company is in the process of setting up its ninth manufacturing facility in the country in Gujarat.

In a statement, Suresh Narayanan, Chairman & Managing Director, Nestle India, said, “As a vindication of the confidence and trust in the Nestlé journey in India, we plan to invest ₹2,600 crore over the next three to four years to augment our existing manufacturing capacities, as well as towards our new under construction ‘state of the art’ factory in Sanand, Gujarat.”

Revenue grows

The company posted a net profit of ₹587.09 crore in the third quarter ended September 30, marginally down by 1.37 per cent compared with ₹595.27 crore in the corresponding quarter of the previous fiscal year. Revenue from operations grew 10.13 per cent to ₹3,541.70 crore. Nestle India follows the January-December period as financial year.

“The Board of Directors have declared an interim dividend for 2020 of ₹135 per equity share (Face value ₹10 per equity share) amounting to ₹13,016.1 million, which will be paid on and from November 20,” the India unit of the Swiss packaged food company said.

Returning back to double digit growth, the company said that both its total sales and domestic sales increased by 10.2 per cent fuelled by volume and mix. Export sales also witnessed a growth of 9.4 per cent.

Improved supply

“The quarter witnessed growth driven by an improved supply situation, as our factories returned to normal output. Boosted by an increase in in-home consumption, our key brands witnessed double digit growth. Demand in out-of-home channels improved during the quarter but continues to be impacted due to the overall environment,” said Narayanan.

He added e-commerce channel continued to witness strong performance up nearly 97 per cent and now contributes about 4 per cent to the company’s domestic sales.

The company said that net profit and tax expense for the quarter are not comparable as the cumulative effect of lower tax rate made applicable from April 1, 2019 was adjusted fully in quarter ended September 30, 2019.

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Published on October 23, 2020
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