Nestle India NSE, the country’s largest packaged food firm, posted a 1.4 percent decline in profit year-on-year for the quarter ended September 30, hit by higher tax costs, but said sales and operating income rose in double digits.
In a BSE filing, the manufacturer of Maggi noodles and KitKat chocolate announced a return to double-digit growth for the quarter under review and committed new investments of Rs 2,600 crore in the coming years.
Profit declined to Rs 587 crore for the quarter, from Rs 595.3 crore in the year-ago period. It posted overall revenues of Rs 3,525 crore, a volume- and mix-driven increase of 10.2 percent. It said that domestic sales also increased by 10.2%.
The Swiss food company’s India unit said that factories returned to regular production in the quarter and posted double-digit growth for key brands such as Maggi noodles, KitKat and Munch chocolates and Nescafe, due to a rise in in-home consumption. During the quarter, demand on ‘out-of-home’ channels increased, and e-commerce grew by 97%, contributing around 4% of domestic sales.
The partnership between the company and India dates back to 1912, when it started to trade on the Indian market as The NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished goods.
After India’s independence in 1947, the Indian government’s economic policies stressed the need for local development. By establishing a company in India, the company responded to India ‘s aspirations and built its first factory in 1961 in Moga, Punjab, where the government wanted NESTLÉ to grow the milk economy. The implementation of NESTLÉ ‘s Agricultural Services required progress in Moga in order to inform, advise and assist the farmer in a variety of aspects.
From growing their cows’ milk yields by improved dairy farming techniques, to irrigation, to scientific crop management practises and to assisting with bank loan procurement.