Nestle India preparing to take a “quantum leap” in digital and analytics capabilities: outgoing CMD Suresh Narayanan

New Delhi: India will remain a critical market for Nestlé’s future growth, underpinned by its large consumption base, political stability, and strong brand resonance, according to Suresh Narayanan, the outgoing Chairman and Managing Director of Nestlé India.

According to a Newsdrum.in report, Narayanan said the company has “faith in the India market” and is continuing to invest in capacity, digital transformation, product innovation, and rural expansion. He expressed confidence in Nestlé’s trajectory beyond his tenure, stating, “Even if I am not there at the helm, the market attraction, the levels of investment, and the future of Nestlé will continue to be bright in this country.”

Nestlé India, which currently reports annual revenues of over Rs 20,000 crore, is establishing its tenth manufacturing facility in Odisha. Narayanan expects the factory to be operational in the next couple of years, in line with the company’s broader strategy to deepen its geographical and manufacturing presence.

Reflecting on Nestlé India’s performance over the last decade, Narayanan noted that its compounded annual growth rate has hovered between 10 and 11%. Despite recent challenges in the urban FMCG segment, he anticipates a return to double-digit growth as consumption recovers. “Consumption will come back in this country,” he said.

When asked about India’s place in the global operations of the Swiss-headquartered firm, Narayanan said India is already among Nestlé’s top ten markets and could strengthen its position further. Investment levels have risen from 2% to around 10% of sales over the past decade, with close to Rs 6,000– Rs 6,500 crore invested in building new capacity. This, he said, was driven by both past performance and continued belief in the market's long-term potential.

India is currently Nestlé’s largest market for Maggi and the second-largest for KitKat. Narayanan attributed the company's success in part to its "think global, act local" approach, which enables tailored products for Indian consumers.

Looking ahead, Nestlé India’s next phase of growth will focus on accelerating its penetration-led volume growth strategy. Under its ‘Rurban’ strategy, the company is expanding its footprint in smaller towns and rural markets, building distribution infrastructure to increase brand reach.

Simultaneously, Nestlé is also stepping up its presence in the premium segment, which has grown steadily post-pandemic. “Premium products, which have been growing at about 16% for us in the last 10 years, will continue to accelerate,” said Narayanan. This includes categories such as Nespresso, Nescafé Gold, premium chocolates, food, and nutrition products.

The company is also preparing to take a “quantum leap” in digital and analytics capabilities. While progress has already been made, Narayanan said Nestlé sees significant scope for further transformation in this area.

Innovation-led growth, which has been a focus area since the Maggi crisis of 2015, will continue to be a priority. Currently contributing about 7% of sales, the company intends to increase this to 10% in the coming years.

“India satisfies the checklist extremely well, opportunity, salience, and future growth potential,” said Narayanan. “That’s why I have the confidence that India can continue to be a key driver of growth for the future.”