FMCG giant Nestle India has expressed optimism about achieving double-digit volume growth in 2023, despite the ongoing challenges posed by the pandemic and inflationary pressures. The company’s CEO, Suresh Narayanan, revealed that Nestle India is on track to meet its targets for the year, and that prices may be revised downward as inflationary pressures begin to ease.
Narayanan highlighted Nestle India’s strong performance in the first quarter of 2023, which saw the company report a 14.6% increase in net profit to Rs 602 crore. The company’s revenue also grew by 9.1% to Rs 3,716 crore, driven by volume growth across its portfolio of brands.
Nestle India’s growth has been buoyed by strong demand for its products, which include popular brands such as Maggi, Nescafe, and KitKat. The company has also been expanding its product range to tap into new segments, including plant-based products and premium offerings.
“We have been focused on innovation and renovation, which has helped us to maintain our growth momentum even during challenging times. We have been launching new products and expanding our existing portfolio, and this has helped us to reach new consumers and drive volume growth,” Narayanan said.
Nestle India has also been investing heavily in marketing and advertising to boost consumer engagement and brand awareness. The company recently launched a new campaign for its Nescafe brand, featuring popular actors Alia Bhatt and Ranbir Kapoor.
Narayanan added that Nestle India is also looking to expand its e-commerce presence and strengthen its distribution network to improve access to its products across India.
However, the company has been grappling with rising input costs and inflationary pressures, which have impacted its margins. Narayanan acknowledged that the situation remains challenging, but said that Nestle India is taking steps to manage costs and optimize its operations.
“We are seeing some easing of inflationary pressures, and this could lead to a downward revision in prices. We are also taking measures to optimize our costs and improve efficiency across our operations, which will help us to maintain our margins and drive profitability,” he said.
Narayanan also expressed confidence in India’s economic prospects, despite the ongoing challenges posed by the pandemic and global economic uncertainty.
“India remains a key growth market for Nestle, and we are committed to investing in our operations and expanding our presence in the country. We believe that India has tremendous potential, and we are optimistic about the long-term growth prospects of the economy,” he said.