**Nestlé India’s Capital Expenditure Soars Amid Growing Demand**
Nestlé India Ltd. has seen its capital expenditure increase nearly fivefold as a percentage of sales over the past decade, driven by rising demand for its products and enhanced manufacturing capabilities within the country. According to Suresh Narayanan, the outgoing chairman and managing director, the company’s capex has jumped from 1.8% of sales in 2015 to 10% in the financial year ending March 2025. In fiscal 2025, the company, known for its Maggi noodles and KitKat chocolate, reported a total income of ₹20,260.42 crore.
Narayanan highlighted that this significant growth has prompted the company to invest in new capabilities and expand its product lines at existing factories, including the establishment of a new factory in Sanand, Gujarat, focused on confectionery and prepared dishes. Additionally, a 10th manufacturing facility is set to be developed in Odisha, underscoring Nestlé’s commitment to the ‘Make in India’ initiative and its focus on catering to Indian consumers.
Reflecting on his tenure, Narayanan noted that he joined Nestlé India during a challenging period marked by the Maggi crisis, which saw the brand’s sudden removal from shelves due to allegations of high levels of monosodium glutamate (MSG). Despite the setback, the company managed to recover 60% of its market share shortly after relaunching the product, thanks in part to innovative strategies such as an online relaunch that sold 60,000 boxes in under five minutes.
Over the past decade, Nestlé India has diversified its portfolio, launching over 150 new products that now contribute to 7% of its sales. The company offers a wide range of products, including chocolates, milk, ketchup, cooking aids, infant nutrition, cereals, curd, noodles, coffee, and pet food, while also exploring premium consumption opportunities.
In a strategic move last year, Nestlé India partnered with Dr. Reddy’s Laboratories Ltd., investing ₹705.6 crore through a joint venture to enhance its wellness offerings.
As Nestlé India continues to adapt and grow, the company remains focused on leveraging the opportunities presented by the evolving market landscape.
**FAQ**
**What factors have contributed to Nestlé India’s increased capital expenditure?**
Nestlé India’s capital expenditure has surged due to heightened demand for its products and the company’s enhanced manufacturing capabilities in India, leading to significant investments in new facilities and product lines.
