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Nestle India, which has been focussing on a broad-based volume-led growth for the past three years, is looking to increase the depth and width of its brand portfolio in India.
Besides, organic opportunities, the company said it is also open to evaluate in-organic growth opportunities.
The company, which recently ventured into the breakfast cereals segment with NesPlus, believes that it now has a strong product-portfolio to leverage on the fast-growing breakfast segment.
Global portfolio
Suresh Narayanan, Chairman & Managing Director, Nestle India said: “We have a global portfolio of about 2,000 brands. In India, we are operating with a truncated portfolio of just 20 brands. While we are focussing on increasing the number of products and brands, we are also looking at growing the depth of our product range, where we see strong organic growth opportunities.”
Continuing with its product launch spree, the Swiss major is next looking to launch Maggi dips, Maggi Special Masala Noodles, which imbibes the flavours of 20 select spices, and a dark chocolate called Kitkat Desert Delight Brownie Kubes, in the coming weeks. It is also looking at bringing in premium coffee products from its global portfolio.
Asked about inorganic growth opportunities, he said: “Any inorganic growth opportunity will certainly be evaluated, but with a long-term strategic focus.”
On rising commodity and raw material costs, he said, “Going forward, clearly the commodity storm clouds are starting to gather. We have started seeing a rise in our overall commodity and raw material cost-base. We take a pragmatic view and will closely watch the situation for another quarter before taking any decisions.”
Meanwhile, Nestle India has also voluntarily deposited about ₹13 crore in Consumers Welfare Fund after holding discussions with the National Anti-Profiteering Authority. The company had earlier said that in situation where the benefit of GST rate cut could not be passed on instantly by reduction in maximum retail price or increase in grammage, it had set aside an amount to be deposited in the fund, “and was not reckoned either in sales or profit.”
Narayanan said, that these discussions with the National Anti-Profiteering Authority were “voluntary” and that the company had asked for a “suo-moto” clarification from the Authority and after the getting the necessary details from the government; it deposited the money in the Consumer Welfare Fund.
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