Maker of big brands like Maggi and Kit-Kat, Nestle will be focusing more on organic growth especially for Indian market.
The food giant believes the next phase of growth for its Indian business, which crossed the Rs 10,000 crore mark in revenues in 2017, will continue to come from organic growth but it is also open to pursue “prudent and meaningful” inorganic growth opportunities.
Nestle is already among the frontrunners for acquiring GSK nutrition business portfolio including health drink brand Horlicks earlier this year.
Speaking at a global media roundtable, Mark Schneider, CEO , Nestle said, “ I am very pleased with how our Indian company has developed..it has showcased strong leadership and very nice organic growth. Going forward, as everywhere else, we are interested in strong organic growth, that to us…is the lifeblood of a successful company. It is important to understand that organic growth is more than just the company’s success as it also tells you how much in favour the company is with the customers. Hence, we are dedicated to strong organic growth.”
“We have been pursuing acquisitions everywhere over the years and that is part of our business model as a growing company to gain additional market presence. So when there are prudent and meaningful opportunities we are interested in those. But we cannot comment on anything specific”, he added.
Recounting the Maggi crisis, Schneider said that, “There was a wave of sentiment building against the product which hurt the company strongly at that time. So, as much as you want to be absolutely sure that what you say to the last degree is true and reliable, you also have to be very fast. One of the reasons the company recovered quickly was because the product (Maggi noodles) was found to be right.”
The company recently kickstarted “Nestlé for Healthier Kids” programme and aims to to help 50 million children lead healthier lives by 2030. This will be done through a slew of measures such as reformulating products, introducing new product innovations beside educating parents and caregivers.
The company said, “This programme will help accelerate the nutritional transformation of more than one-third of its product portfolio globally. It will further reduce salt, sugar and saturated fat levels in its products and besides focus on adding ingredients such as fibre-rich grains or vegetables.”
Schneider also said, “We are committed to strong presence on the online channel. Our online sales are growing about three times faster than the offline sales. Currently 7-8 per cent of our total revenues globally comes from the online channel. We work closely with major online retailers and ensure our products are optimised for their needs.”
Since 2016, Nestle India have already introduced 25 new product innovations.