afaqs! news bureau

India is the largest market for Maggi, second largest for Kit Kat: Nestlé's FY24 report

Also, its export business experienced healthy growth in addition to its domestic market.

Nestlé India, a Swiss global food and beverage company, has reported double-digit growth in its local subsidiary, highlighting the company's focus on penetration, premiumisation, and innovation.

The company's latest annual report reveals that India has become the largest global market for Maggi and the second-largest for Kit Kat, a chocolate wafer brand.

The sales of products are expected to reach over 6% in 2023, up from 3% in 2018. Nestlé's export business also showed good growth, with all key brands and product groups experiencing consistent growth despite 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, focusing on sustained growth and innovation. Nestlé India has also announced that it will continue to pay royalties to its parent company at the existing rate of 4.5% of net sales after a proposal to hike it was rejected by shareholders.

In April, the board approved increasing royalty payments to its parent company by 0.15% per year for the next five years, enhancing them to 5.25% of net sales. Nestlé India's general licence fee rate is comparatively lower compared to other multinational corporations in India.

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