Nestlé bets big on marketing, ad spend at Rs 965.86 crore in FY25

New Delhi: Nestlé India's advertising and sales promotion expenses declined by 25% to Rs 965.86 crore in FY2025 from Rs 1,287.68 crore in FY2024, but the FMCG giant plans continued significant marketing investments, underlining its strategy to deepen consumer trust and bolster new product launches.

In its latest Annual Report (2024-25), Nestlé India detailed how targeted advertising and strategic marketing campaigns have been pivotal in reinforcing brand loyalty, accelerating innovation, and attracting new consumer segments.

Celebrating MAGGI’s 50th anniversary, Nestlé rolled out the emotionally engaging campaign, "Rishtey Maangein bas 2 minute," alongside innovative launches like MAGGI Besan Noodles. These strategic efforts contributed to MAGGI's Prepared Dishes and Cooking Aids segment, accounting for 31.4% of total sales.

Watch the Maggi "Rishtey Maangein bas 2 2-minute” film here:

The Confectionery business achieved record penetration through highly targeted e-commerce marketing, while KITKAT delivered double-digit growth fueled by the "Break Pe Sirph Break" campaign. India now ranks as the largest global market for KITKAT, highlighting Nestlé's successful premiumisation strategy and effective digital outreach.

Watch the KitKat "Break Pe Sirph Break" campaign film here:

Nestlé's beverage brand NESCAFÉ significantly strengthened its market position through digital storytelling that resonated strongly with younger audiences. Strategic product introductions, notably NESCAFÉ ICE ROAST, were boosted by engaging marketing initiatives, driving notable market share gains.

In the Out-of-Home segment, the company leveraged strategic partnerships and co-branded promotions with key players such as Chai Point, Pizza Hut, and Mad Over Donuts, underscoring innovation and targeted consumer engagement.

Nestlé India’s digital transformation has also been instrumental, enhancing marketing effectiveness through AI-driven platforms like "RACE," which streamlined retail execution. Quick Commerce channels emerged as critical growth drivers, representing 45% of e-commerce sales (8.6% of total company sales).

Reflecting on Nestlé India's transformative journey, outgoing Chairman and Managing Director Suresh Narayanan stated, "We no longer fear failure. We prioritised speed in execution and significantly increased our innovation pace." 

Under Narayanan’s leadership since the 2015 Maggi crisis, when Nestlé’s flagship noodles faced regulatory bans, the company's turnover has surged 2.5-fold from Rs 8,100 crore to Rs 20,100 crore in FY2025.

Post-crisis, Nestlé shifted its business model beyond Maggi noodles, launching over 150 new products in the past decade, now contributing 7% to overall sales. KITKAT and Confectionery segments notably tripled and doubled their businesses, respectively, dramatically reshaping Nestlé’s portfolio and market footprint.

Emphasising its long-term vision, Nestlé has significantly increased capital expenditure, reaching 10% of total sales in FY2025 from just 1.8% in 2015. Expansion includes new factories in Gujarat and Odisha, reinforcing the company's commitment to manufacturing in India under the 'Make in India' initiative.

Nestlé India has also confirmed its succession plans, appointing Manish Tiwary as Director and Managing Director effective August 1, 2025.