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Nestle India points to cost volatility, bets on volume-led growth despite global risks & more related News Here

Nestle India points to cost volatility, bets on volume-led growth despite global risks

FMCG major Nestle India has flagged volatility in input costs amid geopolitical uncertainties but said it will continue to drive volume-led growth in the new financial year with a focus on increasing consumption, improving penetration and driving efficiency, PTI reported.Chairman and Managing Director Manish Tewari said the maker of Maggi noodles, Nescafe and KitKat remains cautious as global uncertainties, monsoon concerns and volatility in commodity prices are impacting visibility.Speaking to PTI, Tiwari said, “Times are unstable. It is difficult for anyone to predict what is going to happen even after two months.He did not indicate immediate price increases, but said geopolitical tensions were creating cost pressures due to higher raw material prices and increased packaging costs associated with crude oil.Most FMCG companies have already announced around 3 to 5 per cent rise in prices in the March quarter due to 15-20 per cent increase in raw material costs, impact on packaging due to higher crude oil prices and weak rupee.On Thursday, Hindustan Unilever CEO and MD Priya Nair said the company will implement “calibrated price increases” to manage rising input costs.Tiwari said Nestle India sources more than 97 percent of its ingredients locally and manufactures most of its products in India.However, he cautioned that local sourcing may not completely shield the company if inflationary pressures worsen.“Still, this will not protect us from further inflation” because it will depend on how the political situation changes in the Middle East, he said.“So, that’s something that we have to be prepared for. So, it’s kind of a yellow flag in the future that we look at,” he said.Tiwari said the company will continue to optimize costs internally through efficiency measures.He said despite the uncertain backdrop, Nestle India saw “right momentum” in FY26, largely driven by volume growth across businesses.The company also sharply increased advertising investments in the second half of the fiscal year to support its core brands.Asked about the FY27 outlook, Tiwari said: “We will continue to focus on volumes, let penetration grow.”According to him, Nestle’s strategy of investing behind core brands while maintaining disciplined cost management and using technology is yielding results.“Going forward, we will stick to our strategy to drive investment-driven, volume-led growth behind this brand and we will remain very disciplined in our execution,” he said.Nestle India is also ready for acquisition if a suitable opportunity arises.“It’s a very broad portfolio to take our business over the next four to five years. At the same time, there is a team that continues to look at new locations, possibly looking at acquisitions,” he said.The company is also increasing its rural expansion as part of its ‘Rurban’ strategy, increasing delivery spokespersons from 25,000 to 45,000.“I think my rural market, rural business, will grow much faster than the total sales,” Tiwari said.Nestle India, which is opening its tenth factory in Odisha, will continue to invest to support volume-led growth.“So, we will continue to invest. We see the demand in the country,” he said.Nestle India’s total revenue in FY26 stood at Rs 23,194.95 crore, up 14.46 per cent year-on-year.Its profit rose to Rs 1,110.9 crore in the fourth quarter, while revenue from sales of products stood at Rs 6,723.75 crore.

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