Nestle India, which reported revenues in excess of ₹10,000 crore in 2017, is aiming for a ‘double-digit’ growth in the current year on the back of “optimism” on urban consumption trends.
The company is also looking at expanding footprint in the country and is developing product and marketing plans to address demand in different regions in the country.
Suresh Narayanan, MD, Nestle India, said, “The ambition I have for the company is double-digit growth. Clearly GST will have a different impact…so if [we] get a good mid to high single-digit growth, I will be happy.”
The company, which follows the January-to-December financial year, crossed sales of ₹10,000 crore in 2017, a growth of almost 8% from 2016.
Mr. Narayanan added the last couple of quarters had been ‘fairly encouraging’ for consumer goods. “There is a certain degree of optimism for urban consumption. Rural has related issues such as impact of monsoons…on the other hand, investments envisaged in the Budget should also start kicking in…”
‘15 clusters’
The company has also formed about 15 clusters, each comprising 10-20 employees in particular geographies across the country. These would be responsible for giving inputs on specific products to be sold in a particular market, the choice of channels and marketing plans for those regions.
“The top 100 towns will still be the biggest contributor to our sales, but India’s urban profile is changing. If we don’t prepare to reach out to the next 300-400 towns, we will be missing a large opportunity.”… The idea is to draw plans on a regionally relevant basis,” he said.
The firm was also looking to introduce variants of products that are distinctly regional in their focus, he said. “Regional variants could be in the case of culinary products such as sauces, Masala-e-Magic, confectionery and coffee.”
“This is to enhance the size of the pie for Nestle. We need to penetrate better. How to I do that… by having relevant proposition and targeting relevant geographies,” he said, adding that the strategy could potentially fast track the growth for the FMCG major.
Nestle India, which introduced about 40 products in the Indian market last year, is looking to bringing in premium coffees too in the country.
