Nestle, the FMCG Giant, is set to raise the prices of its products once again in order to offset the increasing production costs. CEO Mark Schneider revealed that the increases will not be as steep as they were in 2022, but the company has some catching up to do over the course of the year.
In the first nine months of 2022, the company reported organic sales growth of 8.5%, with 7.5 percentage points being accounted for by price rises. This decision comes amidst a backdrop of high inflation in many developed economies, driven largely by increases in food and energy prices.
Nestle houses popular brands such as Maggi, Nescafe and KitKat. It has big plans for the Indian market, which is one of its top 10 markets globally.
The company has announced that it plans to invest a massive INR 5,000 crore in India by 2025, which will help the company to accelerate its core business in the country and take advantage of new opportunities for growth.
Ulf Mark Schneider, CEO of Nestle, said, “When you look into the investment in this country and the investment plan through 2025, we are talking about INR 5,000 crore and that compares to INR 8,000 crore over the last 60 years when we started manufacturing in this country.”
Currently, Nestle operates 9 plants across India and is looking at new locations to setup new additional manufacturing capacity.