Nestlé, known for producing Maggi noodles and Nescafé coffee, is currently searching for potential locations for its tenth factory in India. As the company’s second-largest market in Asia in terms of sales, Nestlé has already begun preparations for its upcoming manufacturing project in the country.
A representative stated that the biggest food producer globally is exploring the possibility of setting up a manufacturing facility in an area of India where it has no existing factories.
The spokesperson said, “One of the areas that we do not have a representation of a factory is in the east. If we are able to get a good geography and locational fit, we would like to look at the east, but at the moment, [we are] evaluating other regions too to set up the tenth factory. We will make up our minds sooner than later. There is some preliminary work that has been done and then we will make an announcement.”
Nestlé’s annual report indicates that the company has several factories in India that produce beverages, dairy items, and confectionery products. Additionally, the corporation has established a location for its Nutrition and Health Science division in the country.
Last year, the Swiss behemoth recorded sales of SFr1.96bn ($2.19bn), reflecting a 12.9% increase compared to the previous year. Nestlé reported that all categories showed a widespread performance.
Nestlé’s publicly listed subsidiary in India announced a sales increase of 21.3% in the country during the first quarter of 2023. This was reported last month, with sales reaching INR 48.08bn ($588.5m).
Suresh Narayanan, the Chairman and Managing Director of Nestlé India, said, “This is the highest growth for [Nestlé India] in a quarter in the last ten years, excluding the exceptional quarter in 2016 which was off a low base in 2015, All our product groups delivered double digit growth, a notable feature in these past four quarters in a row.”
This week, Nestlé disclosed its plan to close down two of its facilities situated in the US.
Nestlé Health Science, the division of the Swiss conglomerate that concentrates on medical and healthy nourishment, declared in a legal employment notification that it is presently “consolidating its supply chain network to boost efficiency.”
In addition, the company stated that it is considering various options for opening a coffee factory within the same country.