Nestle India Q3 net profit up 30% to Rs 446 crore

Gone are the days when people would visit cinemas and malls to watch their favourite movies, these days it’s all about creating experiences and taking it beyond that.

In a recent development, Nestle Professional has joined hands with PVR-Inox cinema halls to elevate the experience with NESCAFÉ.

Crafted with over 80 years of roasting and brewing expertise, NESCAFÉ, along with a range of beverage options from Nestlé including Nestea Cardamom Tea and Nesquik hot cocoa will now be available at more than 200 PVR-Inox theatres across 29 cities in India.

“It has always been our endeavour to ensure that our consumers enjoy Nestlé’s brands, both in home and out-of-home. This partnership is a step towards building multiple, relevant consumption occasions for our range of beverages. Movie theatres have traditionally served as a popular entertainment hub and through this association we intend to elevate the experience of new age cinema goers,” shared Saurabh Makhija, head – Nestlé Professional, Nestlé India.

Nestlé Professional is dedicated to address the unique business challenges and opportunities of Out of Home customers by providing high quality and relevant food & beverage solutions and services. Nestlé Professional offers solutions across product categories – whole roasted beans, premix based beverages, confectionary, dairy and food solutions. The company has recently launched its range of cutting-edge machines which offer fresh brewed coffee from whole roasted coffee beans, along with a range of other beverages across instant tea and cocoa.

“Cinema moments have evolved from watching a film to a larger experience with family and friends. Much like our partners, we take great pride in helping our patrons relax, unwind, and enjoy the small pleasures of life, through cinema. We are proud to partner with Nestlé Professional towards a common goal of elevating the movie experience. Nestlé Professional offers a range of beverages so there is something for everyone. We are confident that our patrons stand to gain immensely and their movie-viewing experience would go up a notch through this association,” added Gautam Dutta, Co-CEO, PVR INOX Limited.

In order to drive its aggressive growth plans in India, FMCG major Nestle India is planning to launch nearly two-three dozen products in the calendar year 2019 across categories.

The company is also looking to tap more international markets by targeting countries with higher Indian diaspora like SAARC and South East Asia. Nestle India's 6% of revenues come from exports.

Suresh Narayanan, Chairman and Managing Director, Nestle India, said, "In 2018, our core brands have performed well. We look forward to greater acceleration as we go forward. We have two-three dozen projects (products) in the pipeline for launch in 2019. These products are across categories."

"As an organisation the one clarion call that we are working to is that we are in the business of growth to thrive and not to survive. It is not a survival mode that we look at the opportunity in India or the opportunity for growth but a thriving mode," he added.

Nestle India on Thursday reported a 9.59% year-on-year increase in its net profit at Rs 341.76 crore for three months ended December 2018.

The FMCG major has also seen a 12% jump in domestic sales to Rs 2,690.51 crore.

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“We have, once again, delivered volume-led profitable growth. There has been double-digit growth in almost all the categories, supported by a step-up in demand generating activities including on new products,” said Suresh Narayanan, Chairman & MD, Nestle India by adding that their iconic brands like Maggi, Nescafe, Kitkat, Munch and Everyday continued to deliver strong performances.

The company follows the calendar year as its financial year so its earnings were for the fourth quarter.

The maker of instant Maggie noodles reported an 11.37% y-o-y increase in revenues to Rs 2,897.27 crore in the quarter.

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Nestle’s Ebitda margins for the quarter contracted by 272 bps y-o-y to 19.3%, compared with 22.02% in Q4CY17. Consequently, the Ebitda (earnings before interest, tax, depreciation and ammortisation) decreased by 2.38% y-o-y to Rs 559.2 crore compared with Rs 572.85 crore in Q4CY17.

Cost of materials consumed for the quarter increased by 9.2% to Rs 1,200.36 crore from Rs 1,098.96 crore in Q4CY17.

Nestle India has introduced Everyday Chai Life in three flavoured variants. These include Desi Masala, Saffron and Cardamom, and Ginger and Lemongrass. 

The instant chai will be available in a convenient sachet and easy to carry sachet in a cup format, priced at Rs 20 and Rs 30, respectively. Everyday Chai Life will be accessible both in stores and via e-commerce platforms.

Arvind Bhandari, General Manager, Dairy, Nestle India, said, "We truly believe that a perfect cup of tea can magically reconnect you with what matters in life, transforming everyday tea moments into meaningful reconnections and conversations."

"With this latest innovation, Nestle India continues its journey as a pioneer by redefining the mode of consumption to deliver consumption on the go for today's consumers," he added.

Nestle India has introduced 'Les Recettes De L'Atelier', a premium collection of visibly authentic and irresistibly uneven chocolate tablets in India. 

The range of chocolate is made in Switzerland at the Maison Callier or the 'Chocolate Museum'. It is crafted with a handmade spirit using only all-natural ingredients.

Les Recettes De L'Atelier will be made available in four variants such as three in dark chocolate and one in milk chocolate. The range consists of Milk Chocolate Raisins Almond Hazelnuts, Dark Cranberry Almonds, Dark Roasted Almonds, and Dark Raisins Almonds Hazelnuts.

Nestlé India, India's largest food company, has introduced a 'MAGGI Wrappers return' scheme for curbing plastic waste.

Under this scheme, Maggi noodles consumers can exchange 10 empty packs of Maggi noodles for one free fresh packet. The programme is started on a pilot basis in Dehradun and Mussoorie.

Nestlé India Spokesperson said, "Nestlé India as part of its various plastic waste management initiatives has also launched a MAGGI Wrappers return scheme as a pilot project in Dehradun and Mussoorie for consumers, by working with around 250 retailers in the region, who shall collect MAGGI Wrappers. Consumers are given a packet of MAGGI Noodles for every 10 MAGGI noodle wrappers they return."

"We are hopeful that this will bring about a behaviour change in consumers and help create awareness for responsibly disposing plastic waste and prevent littering," the spokesperson added.

Maggi, an  instant noodles brand by Nestle India has gained over 60 per cent market share in terms of value after facing legal battles and has almost touched the pre-crisis level, said a top company official. However, volume-wise Maggi is still away from the pre-crisis period, when Nestle used to dominate the market with 75 per cent market share.

"We are little over 60 per cent (market share). In business terms, we are almost back to where we were (in terms of pre-crisis). In value terms, we are almost back there," said Nestle India Chairman and Managing Director Suresh Narayanan.

He further said, "We still have some time to catch up that pre-crisis volume."

Maggi as of now contributes around one-third of the total sales of the company.

"Total contribution from the prepared foods (Maggi and Maggi franchise) is about 30 per cent," said Narayanan in a media roundtable here.

Nestle India had in 2017 crossed the Rs 10,000-crore sales mark.

Food Safety and Standards Authority of India (FSSAI) had banned Maggi in June 2015 for five months for allegedly containing lead beyond permissible limits, forcing Nestle India to withdraw the product from the market.

After overcoming the legal battles, the popular noodles brand was back in the market in November 2015.

FMCG major Nestle India's market valuation has surged past Rs 1 lakh crore mark helped by a rally in its share price.

The company's market valuation stood at Rs 1,01,541.66 crore at close of trade on BSE today.

Shares of the company gained 3.14 per cent to end at Rs 10,531.65 on BSE. During the day, it surged 3.55 per cent to Rs 10,574 -- its 52-week high.

At NSE, shares of the company went up by 3 per cent to close at Rs 10,511.75.

Led by the gain in the stock, the company's market valuation rose by Rs 3,096.66 crore to Rs 1,01,541.66 crore on BSE.

Nestle has also become the third FMCG company after Hindustan Unilever and ITC to command a market valuation of more than Rs 1 lakh crore.

HUL's m-cap stood at Rs 3,64,470.22 crore and that of ITC was Rs 3,29,355.98 crore.

The stock of Nestle has gained over 34 per cent so far this year.

Nestlé India announces the launch of NESPLUS - a range of nutritious and delicious breakfast cereals for the entire family. A unique combination of wholegrain and multigrain, NESPLUS breakfast cereals aim to offer an array of healthy breakfast choices for Indian families.

The new range of NESPLUS breakfast cereals comes with four multigrain variants – Kokos, Choco- Burst Fillows, Strawberry-Burst Fillows and Nutty Honey Granola. Each of these is a combination of four grains - wheat, rice, oats and the traditional Indian millet, jowar. This combination of grains along with unique flavors has been specially created for the Indian palate. A key characteristic of the product is that it remains crunchy in warm milk.

Commenting on the launch, Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India said, “Breakfast is considered to be the most important meal of the day and consuming the right breakfast sets the tone for the rest of the day. NESPLUS is specifically designed for the Indian consumer and offers Vitamin D, Calcium, B-Vitamins, Iron, Folic Acid and Fibre, making it a great addition to the breakfast table.”

With this launch, Nestlé India aims to provide high quality nutritious breakfast options for the Indian consumers in line with its vision to introduce products ingrained in nutrition, wellness and health.

India’s largest pure-play food and beverages company, Nestle India has received board’s approval to add breakfast cereals to its portfolio from the company's joint venture with Cereal Partners Worldwide (CPW), and also launch it in India, reported a financial daily.

In the global market, Nestle is one of the major players in breakfast cereals, competing with brands like Kellogg’s and PepsiCo’s Quaker Oats, and now it will be present in India as well. Breakfast cereal market in India is worth Rs 15 billion and has local players like Marico and Bagrry’s competing with the same international brands.

The report quotes industry estimates saying that India’s breakfast market is bound to cross Rs 25 billion in size in the next 2 years. It is mainly driven by convenience, health and value of nutrition. Nestlé is also expected to aggressively promote a breakfast cereal brand it had launched in 2016 for kids, named Ceregrow.

CPW is a joint venture between Nestle and General Mills, which is a network of 17 factories and four R&D centres. It employs 4,600 people across the world.

The company was a late entry in the market but it remains confident. Nestle India’s CMD Suresh Narayanan said that this business complimented the company’s present portfolio since it is about health and food expertise at the same time.

“The consumer need for breakfast choices is only growing and firms need to bring more options to satisfy this need,” he added.

Nestle recently reported a growth in the sales volume of its four big product categories that include milk products and nutrition, prepared dishes, cooking aids, power and liquid beverages and confectionery.

Local candy makers, including Parle, ITC and DS Foods grabbed shares from multinationals in the Rs 7,500-crore confectionery segment, as per latest Nielsen data elicited from the familiar Industry officials.

Global firms such as Perfetti Van Melle, Mondelez and Nestle either remained stagnant or lost share last calendar year, hurt by higher prices of their wares in a stressed market due to demonetisation. Marketers feel even a 50 paise price hike could impact growth in the price sensitive category.

The candy companies went through the price revision like Mondelez India relaunched Halls from 50 paise earlier to Rs 1 and doubled its price of Choclairs to Rs 2 while Perfetti Van Melle India launched most of its candies including Alpenliebe at Rs 1 and upwards. Parle Products, however, kept their product prices unchanged. “Post demonetisation, lot of lower denomination currency came back into circulation that had helped sales for a 50 paise product.

Category head at Parle Products that sells brands including Mango Bite and Poppins B Krishna Rao said, “But at the same time, the practice of consumers accepting a Rs 1 toffee from grocers stopped to a large extent. Parle gained 160bps in 2017 with 16% in the confectionery space, while Perfetti lost share marginally by 20bps at 10.2%. Including chewing gums, Perfetti is by far the market leader controlling nearly a quarter of the overall market. As a category, the entire industry has been trying to move to Rs 1 price point after increase in the price of sugar, other raw materials and even packaging costs.”

One of the spokesperson said, “The focus has been on premiumisation with significant growth achieved for the Rs 1 and above portfolio in the confectionery segment. Growth has been achieved through introduction of differentiated offerings under the Candyman range.” To be sure, India’s leading chocolate makers too posted near decade-low growth in sales last fiscal, as health-conscious consumers cut back on discretionary buying in a slowing economy.

Mondelez, India’s largest chocolate maker and Nestle’s chocolate divisions saw sales rise by about 6% each in the year to March 2017 — better than a year ago but far from the double-digit growth the candy rivals have seen in most of the last decade. Yet, they remain bullish in the candy segment that has also seen a rush of new players both from large food companies such as DS foods as well as regional local brands.

Associate director Amit Shah said, “As leaders in chocolates and strong challengers in other categories we operate in, we continue to invest and innovate our brands,” marketing (gum, candy & beverages) at Mondelez India, that sell Halls and Cadbury Choclairs. Perfetti too posted below 1% growth for the second consecutive year last fiscal and said competition is getting intense, especially in the candies segment.

In the annual filing with Registrar of Companies, it said, “Whilst we had moved much of our portfolio from the 50 paise price point to Rs 1, with product value addition, the bulk of the market stays at 50 paise, leading to strong market challenges.”

Global Food major, Nestle SA is set to launch its first organic food line in Brazil in the coming weeks owing to its efforts to make a global push to capture growing interest in healthy and organic products.

Brazil executive manager for dairy and cereals, Carine Malher, said Nestle was planning to sell 1 million boxes of organic oatmeal and oat bran products in the country this year.

The company's previously unannounced foray into Brazil's organic foods segment is relatively minor in global terms. Each box of oatmeal and bran has a suggested price of 6.99 reais ($2.16), meaning the company projects slightly over $2 million of sales in the first year. But the move fits into a more ambitious organic growth program by Nestle.

Malher said the company was actively developing a number of organic products in various "distinct units" in Brazil, while looking at acquisitions that could increase Nestle's presence in the country's still-modest organic foods market. The company should launch organic milk offerings in the first quarter of 2019 and Nestle also has an internal start-up in Brazil developing organic-based snacks. "We have the oats, we have the organic milk, and we have more business units working on other products, so there is commitment to more organic offering,” he added.

Early this year, Nestle bought a majority stake in Terrafertil, an Ecuadorian company selling natural and organic plant-based foods. Nestle had also purchased Canadian vitamin maker Atribum Innovations for $2.3 billion in November 2017 and announced deals for Sweet Earth vegetarian foods, Blue Bottle coffee, and Chameleon Cold-Brew coffee.

Mahler said Nestle already has a distribution contract for the new organic line with supermarket chain Pao de Acucar, owned by GPA, one of Brazil's two major food retailers, and is planning to sell through many other retailers.

Swiss FMCG major Nestle announced its foray into pet care segment in India by launching premium dog food through its step down firm Nestle Purina.

The company has launched Purina Supercoat range of dog food, which offers a wholesome combination of high quality natural ingredients, Nestle said in a statement.

"With the launch of Supercoat in India we kick starts our mission to raise the standards for pet nutrition. We will bring our global portfolio to India to cater to these consumers and become a significant player in the rapidly growing pet food category” quoted Purina PetCare India MD Varindra Sewak.

Pet owners are becoming increasingly aware and focusing on providing best nutrition to their pets and have fuelled the demand for high quality specialised pet food.

According to the company, India has 19 million estimated pets and the pet food industry in India has huge potential and is expected to double in size in the next five years.

Food Safety and Standards Authority of India (FSSAI) chief executive Pawan Agarwal said “The government will establish a self-regulation platform for food companies, retailers stocking packaged food and fastfood restaurant chains. The move will help benchmark them against the best in class, thus raising standards and making companies mindful of rules and consumers. This will encourage healthy competition among companies, retailers and QSR chains and will be an open platform for consumers to see for themselves. The companies will be ranked on basis of their declarations and the platform will also mention names of companies which haven't shared the required information.

Companies such as Hindustan Unilever, PepsiCo, Nestle, Parle Products, Danone, ITC, Patanjali and Mondelez, retailers like Walmart and Future Group, Aditya Birla Retail and Spencer’s Retail and quick service restaurant (QSR) chains including KFC and McDonald’s will be put on an equal self-compliance footing under the plan.

FSSAI’s “food safety and shared responsibility” score will be a publicly accessible online platform for companies to rate themselves against parameters such as compliance with regulations, nutritive content, dealing with consumer grievances, upstream and downstream supply chain capacity and promoting food safety in schools. It’s been dubbed ReFoc for responsible food companies score.

Agarwal also said “By engagement, sharing, cross-learning and healthy competition, we want to raise the bar not only for food safety but make foods businesses more responsive to consumers and government regulation. As we move forward, we will make this matrix more robust.”

The regulator has invited the top 200 companies by sales to join the platform in the first phase of the self-regulation exercise. The FSSAI said it will make public names of companies that don’t want to participate.

Nestle, the country's largest packaged foods maker, welcomed the move and said in a statement “We believe in providing, transparent and responsible communication to the consumers as well as other stakeholders. We welcome initiatives which encourage sharing of information and will continue to engage with all relevant stakeholders on this subject.”

HUL Spokesperson said “This will not only encourage the food business to take full responsibility of food safety but also ensure that regulators can review with consistency the efforts being made by the companies on safety and hygiene”.

Danone India managing director Rodrigo Lima said “Food safety cannot be the responsibility of the regulator alone, self-regulation by food businesses and awareness of consumers will go a long way in creating an atmosphere of trust and quality. This resonates well with our mission of bringing health through food to as many people as possible.”

KFC MD India said “We are committed to contribute to the larger objective of ensuring health, hygiene and safety standards for consumers and proactively working on bringing global best practices and driving knowledge sharing programmes with the regulators”.

Nestle has sold two of its tea brands in North America as the world's biggest food maker presses ahead with reshaping its business to focus on new consumer trends and healthcare.

Private equity firm Fireman Capital Partners said it has linked up with Dunn's River Brands to buy the Sweet Leaf Tea and Tradewinds businesses from Nestle North America.

Under Chief Executive Mark Schneider, who took over this year, Nestle has embarked upon an overhaul of its brands and strategy as it seeks to overcome sluggish growth in its traditional businesses.

Earlier this month the Swiss company announced the purchase of Canadian vitamin maker Atrium Innovations for $2.3 billion, its fourth purchase in recent months.

It has bought Sweet Earth vegetarian foods and Blue Bottle coffee in September and Chameleon Cold-Brew coffee in November as it adjusts to a market where customers favour smaller, independent brands.

Nestle, the maker of Gerber baby food, Purina pet food and Nescafe coffee came under pressure this year to improve returns from activist shareholder Third Point. It has since announced a share buyback and a margin target.

Nestlé India has inaugurated the first Nestlé Food Safety Institute (NFSI) in India. NFSI India will be an integral part of and will work closely with the Nestlé R&D Centre India and Nestlé Research Center in Lausanne, Switzerland.

Nestlé R&D Centre India, is a part of Nestlé’s longstanding commitment and successful presence in India. NFSI India has been established at the Nestlé R&D Centre India to develop a collaborative approach towards ensuring safe food.

The mission of NFSI India is to build and share knowledge through collaborative partnerships for strengthening the food safety environment in India.

“I would like to congratulate Nestlé and wish them all the best for this initiative. NFSI India will conduct training programs on Food Safety Management Systems, Testing Methods, and Regulatory Standards. We hope this institute will help meet India’s growing demand for safe and healthy food. I believe that there is a need for such institutes to spread awareness on safe and healthy food,” said Pawan Agarwal, Chief Executive Officer, Food Safety Standards Authority of India (FSSAI).

NFSI India will serve as the local interface of Nestlé’s Global food safety and research capabilities and will leverage expertise in food safety science to collaborate with reputable academics, government agencies and research institutes in the country.

“We are extremely happy that the pioneering institute for Food Safety set up by Nestlé, has been inaugurated by Mr. Pawan Agarwal, Chief Executive Officer, Food Safety Standards Authority of India (FSSAI) and would like to thank him sincerely for encouraging this initiative. I would also like to compliment the Nestlé R&D team who has taken this commendable initiative. The food safety environment in India is changing dynamically and so are the consumers. There is an increasing consciousness among them on the quality of food consumed. We at Nestlé, strongly believe that food has a significant influence on our health and there should be collaborative efforts between regulatory bodies and industry for catering to the health and safety of consumers,” added Suresh Narayanan, Chairman and Managing Director, Nestlé India.

The NFSI India laboratory is equipped with high-end analytical technology and is an integral part of the global network of food safety experts at Nestlé.

FMCG giant, Nestle India said that it will pass on benefits of reduced tax rate under GST on various products such as milk powder to consumers once the new tax regime kicks in.

There has been considerable reduction in GST rate on milk powders and consequently the price of Nestle Everyday Dairy whitener is expected to undergo commensurate reduction, the company said in a statement.

Under GST, which got implemented from June 30 midnight, there will be no tax on fresh milk.

The company stated, "In categories where there are reductions in taxes, appropriate price reductions would be put into effect for stocks manufactured from July."

Nestle India further said there would be a transition time before new price stocks are available in the market.

Suresh Narayanan, Chairman & MD, Nestle India, said, "We believe that over time, this (GST) will unleash economies of scale and economies of efficiencies that can be quite significant."

He said, "The company is passing on the benefits of lower taxes, wherever applicable, to its consumers."

Nestle India has announced the launch of iron fortified noodles as part of its 'Simpy Good' 2020 initiative. The company is commited to reduce sodium content in the noodles further by 10 % by 2020 and increasing micronutrient fortification. 

The company in a statement said, "Over the last 10 years, we have brought down sodium levels by 32.7% in our Maggi portfolio. We are committed to further bringing it down by 10% by 2020." 

Nestle India is exploring ways to fortify its mass consumption products to close the gap and contribute to the larger national objective. 

Suresh Narayanan, Chairman & Managing Director, Nestle India, said, “With ‘Simply Good’ 2020 initiative, we are building a new, a better, and an even stronger MAGGI brand driven by our purpose which is ‘enhancing quality of life and contributing to a healthier future’. It is a step where we want to introduce products which offer healthier choices to our consumers as we simplify our ingredients and encourage home cooking. At the forefront of this drive is the commitment to reshape MAGGI brand’s products to emphasize the use of familiar and common ingredients that people know and use for home cooking, from their own kitchen cupboard." 

The company said that it has also introduced GDA (guideline daily amount) on packs to give transparent information about the nutrients like energy, total fat, saturated fat, sugar and sodium.

FMCG major Nestle India has reported an increase of 6.76 per cent in net profit to Rs 306.76 crore for the first quarter this year, driven by volume growth across products including Maggi noodles.

The company, which follows January-December period as financial year, had posted a net profit of Rs 287.32 crore for the March quarter of last fiscal.

Its net sales during the quarter under review were at Rs 2,575.74 crore, up 9.10 per cent as against Rs 2,360.80 crore a year ago, Nestle said in a BSE filing.

Suresh Narayanan, CMD, Nestle India, said, "Innovation and renovation, as also volume based growth, are core business strategies outlined by Nestle India almost 18 months back and I am pleased that this strategy is now playing an important role."

During the quarter, domestic sales moved up 9.74 per cent to Rs 2,409.34 crore as against Rs 2,195.46 crore in the corresponding period a year earlier.

Nestle said, "Domestic Sales increased by 9.7 per cent mainly due to increase in volumes across product groups, including rebuild of the Maggi noodles, supplemented by marginally better realisations mostly from carry over pricing."

However, its exports were almost flat at Rs 166.40 crore as against Rs 165.34 crore.

Nestle added, "The growth of 0.6 per cent in exports was largely impacted by lower sales to Nepal and Bhutan."

Nestle's total expenses in the first quarter were up 12.81 per cent at Rs 2,153.46 crore as against Rs 1,908.85 crore.

The company's stock settled at Rs 6,819.55, down 0.48 per cent, on BSE

FMCG major Nestle India has strengthened the range of its popular instant noodles Maggi by introducing four new regional flavours.

The new range consists of four new flavours - Amritsari Achari, Mumbaiya Chatak, Super Chennai and Bengali Jhaal, which have herbs and spices used in various regional cuisines, Nestle India said in a statement.

Priced at Rs 240 for a box of three units each of all four flavours, it would be available exclusively at PayTM Mall, it added.

Maarten Geraets, GM Foods, said, "We are happy to introduce this new range and are confident that it will be appreciated by our loyal customers, who expect nothing but the best from Nestle India."

To roll out promotions for new variants of Maggi noodles, Nestle India has tied-up with Google and Paytm's e-commerce platform, Paytm Mall.

Inspired by regional cuisines, the new variants are will cater to distinctive local tastes with signature herbs and spices.

Paytm Mall has created a special Maggi brand store to sell Maggi Masalas starting from April 22.

Google will run an online contest, where consumers have to guess the new flavours by choosing the correct options and submitting their votes.

The company said, "The objective of this engagement is to build anticipation and excitement around the new variants, where consumers have to guess the four flavours from the eight options provided," Nestle said in a statement.

Nestlé MUNCH, one of Nestlé India's most popular brands in the chocolate and confectionery category, has associated with India's mega movie franchise Baahubali for the release of Baahubali 2, The Conclusion.

As the film buffs gear up for the year’s most anticipated movie, the partnership will be activated through the launch of five new MUNCH limited edition packs and a high decibel television campaign, supported by exclusive social media content.

Nikhil Chand, General Manager, Chocolates and Confectionery, Nestlé India, said, "India is a growing chocolate and confectionery market, and there is a need for excitement and innovation in this category. Importantly, MUNCH enjoys a clear leadership in the coated wafer segment and it is a conscious effort always to partner with popular and yet unique platforms. 

We are very pleased to be associated with Baahubali 2 as this will help us engage with our consumers in a more exciting way. Baahubali has been a multilingual blockbuster and has won the hearts of millions, and the current partnership, brings alive a similar proposition of Nestlé MUNCH as one of the most popular and loved brands in the country."

Entry of new variants in the health foods sector in India has caused growing competition among brands. To counter intense pressure from new entrants from giants such as Nestle, Danone and Abbot, GSK’s Horlicks has decided to drop its price by almost a fifth for its low unit packs to boost sales in small towns.

On the other hand, it is stepping up launches of high margin specialised variants.

Manoj Kumar, Managing Director, GSKCH said, “The category is having a volume growth problem. The rural economy has not been good over the last two years. So, the slowdown of the small town phenomenon over the last two years hurt this category the most.”

There has been a spurt of activity from rivals in the past two months that possess a threat to Horlick’s share. Last month, Nestle relaunched its fortified milk drink Milo with under 10% sucrose per pack. French firm Danone SA’s also introduced its health drink Protinex Grow into market.

Other products like Abbot’s Pediasure and Ensure and US firm Mead Johnson’s Enfagrow, a nutritional milk powder for kids, made their entry into the market.

In February, Danone announced that it expects to double India revenue by 2020 and that it will introduce 10 products in health and nutrition segment this year.

While India is the second largest country after the US in terms of topline for GSK Consumer, the Gurgaon-based firm continues to depend heavily on Horlicks. The brand and its variants contributing 75% to its total sales.

Kumar said, “Since a significant portion of our category is in rural and small towns, we are very much linked to the revival of the economy there. We are playing both the mass and high-science segment with clinical claims. GSK will be attacking the premium segment willing to pay for functional and life stage products on one end and lower prices in the mass segment which is looking for value on the other end.”

Kumar added, “The government’s focus on the rural economy and a good monsoon last year did help revive the category, but the demonetisation move again stalled consumption. However, the revival of the rural economy and reversing pricing of sachets by 20% should move sales, as consumers tend to enter the category and then upgrade.”

Sachet prices of Horlicks have been dropped from Rs 6 to Rs 5.

Swiss food group Nestle plans to close its plant in Linz, Austria, by March 2018, it said citing falling demand and changing consumer trends.

It said it would consult labour representatives to help the 127 staff affected. The plant opened in 1879 and makes around 6,000 tonnes of food products per year.

Nestle currently employs around 1,000 workers at 16 sites in Austria, it said on its Austrian website.

The factory in Linz specialised in products for its business to business division.

As a part of its commitment to provide high quality and clean drinking water, Nestlé India has been undertaking several programmes to facilitate access to clean drinking water over the years. Taking these initiatives a step forward, the company has tied up with the Department of Medical and Health, Government of Rajasthan to extend support and improve primary healthcare in the state by providing access to clean water for consumption by the people.

As part of this partnership, Nestlé India in association with the Department of Medical and Health, Government of Rajasthan, has identified a total of 10 Public Health Sample units where the company will provide clean drinking water through its NGO partner, Piramal Sarvajal. This will be part of Adarsh Public Health Center Yojna established by the Government. Sarvajal will be constructing single phase bore-wells and water tanks with efficient water filtration and delivery mechanism.

Commenting on the partnership, Dr. B.R. Meena, Director Public Health, Department of Medical and Health said, “The Department of Medical and Health, Government of Rajasthan aims to improve the primary healthcare facility in the state and one very important step is to strengthen drinking water facilities. Through this partnership with Nestlé we are reaching out to 10 public health centres providing clean drinking water to people. We are grateful to Nestlé for extending their support in this very meaningful endeavour and look forward to this partnership.”

Speaking on this occasion, Mr. Sanjay Khajuria, Senior Vice President Corporate Affairs, Nestlé India said, “Nestlé India is honoured to be partnering with the Department of Medical and Health Government of Rajasthan for a cause which we strongly believe in. We have been involving schools and communities around our factories through joint ownership of water tanks, which help to ensure better upkeep and maintenance of the tanks. Such partnerships have helped in construction of clean drinking water facilities. We also do regular assessment to ensure that the project benefits a sizeable number of people who do not have access to alternate drinking water sources and who cannot afford to construct such facilities themselves”.

In order to strengthen support to this cause, Nestlé India has already constructed 244 water tanks across six states benefitting more than 1,27,000 students under Nestlé’s Clean Drinking Water Projects. Nestlé India has also partnered with Piramal Sarvajal to set up purification systems including UV and RO facilities in projects at various locations.

FMCG major Nestle India, a Swiss transnational food and drink company, has declared an interim dividend of Rs 16 per share for 2016.

In a BSE filing, Nestle said, "The board of directors of the company at its meeting held on December 5, 2016, has declared third interim dividend of Rs 16 per share for 2016 on the entire issued, subscribed and paid-up share capital of the company," Nestle said in a BSE filing.

The third interim dividend will be paid on and from December 22, 2016.

The stock of Nestle was trading 1.74 per cent higher at Rs 6,346.70 on BSE in the morning session.

Nestle India, is one the world's leading nutrition, health and wellness companies, has launched a new anthem for its new campaign.

Their campaign is to 'Educate The Girl Child' in association with the Nanhi kali programme.

The new anthem is based on the 'School Chale Hum' song produced by BharatBala Productions.

The music has been given by the iconic musical trio, Shankar-Ehasan-Loy and Harshdeep kaur has lend the voice with some young girls for the chorus, who are also part of the Nanhi Kali programme.

Nestle India has brought a change in packaging of three of its most popular brands, MaggiI, Nescafe and Kitkat to support girl child education in association with Nanhi Kali, NGO imparting education to underprivileged girl children across India. In an attempt to spread awareness for this critical issue of girl child education in India, Nestle has changed packaging of 100 million packs available on shelves by the end of September.

In an innovative approach and for the first time in India for any FMCG brand, Maggi, Nescafe and Kitkat will give up their most iconic and recognized brand properties to support the cause of educating the girl child. Maggi has changed its tag line from “2 minute noodles” to “2 minutes for education”. Kitkat has changed the visual of the finger snap to one without the break with the line “No break from education” and Nescafe changed the tagline “It all starts with a Nescafe” to “It all starts with education”. This has been further reinforced with a blue band which carries more information on the association with the URL of Nanhi Kali.

Speaking on the partnership Suresh Narayanan, Chairman and Managing Director, Nestle India said, “We are changing the packaging of three of our most iconic brands to sensitize and draw attention to the crucial need for society and citizens to embrace our collective responsibility in ensuring that girls are allowed, given access to and nurtured with the power of education. Girls with access to education not only improve their own lives but also bring positive changes to their families, communities and economies.”

Anand Mahindra, Chairman, Mahindra Group, says “This is a path-breaking and innovative partnership between Nestle India and a non-profit organisation, both leaders in their respective field. We believe that supporting girl's education is a national priority and will have a far reaching positive impact on society. I am sure the new packaging of Maggi, Nescafe and Kitkat carrying the message to #EducateTheGirlChild will have the desired impact of helping Nanhi Kali put a million girls in school. I am immensely grateful to Nestle for their support to Nanhi Kali."

The partnership with Nanhi Kali further strengthens the Nestle Healthy Kids Programme which has already reached out to about 1,00,000 beneficiaries, claims company. Project Nanhi Kali, jointly managed by K. C. Mahindra Education Trust and Naandi Foundation, has been a credible programme working in the area of girl child education for decades.

Italian chocolate maker Ferrero who made endeavored in the Indian market eight years ago are now roaring high as their annual revenue figures are scaling up year-on-year. The recent numbers of 2015 show that company which produces products such as Kinder Joy chocolates and Nutella chocolate-hazelnut spread has generated revenue of Rs 929 crore (as on March 2015). On the other hand, the company which is among one of the leaders in the business, Nestle has managed to garner revenue 1,110 crore in calendar 2015.

The aforementioned figures suggest that Ferrero is closing in with Nestle as three years ago, Nestle used to generate revenue which was three times that of its Italian counterpart. Mondelez, which sells Cadbury chocolates, still dominates the segment with annual revenues of over Rs 6,500 core. Experts attribute this to Ferrero's differentiation strategy.

Describing about the recent shift, Devendra Chawla, President, FMCG and Brands at Future Group said that there is a case to revisit the lens with which marketers view Indian consumers and affordability. Brands like Ferrero with no historic baggage has discovered and led the top down approach of premiumising through innovation versus old school thinking of focusing mainly on low priced products. Ferrero has shown that there is a large market even at the top end.

The recent report of Nomura claims that Nestle has suffered a lot because of its portfolio issues that gradually piled up and resulted in the decline of its revenue and share loss. The report further stated that Growth in the chocolate and confectionery business for the company has been in decline since calendar 2010, but revenue has declined from calendar 2013 onwards. Reasons for this decline are portfolio optimisation in chocolates, as well as seeking premiumisation at a time when demand was slowing. That apart, the failure to innovate beyond the wafer segment when consumer tastes were evolving is also blamed for the growth decline. 

Patanajali Ayurved, the FMCG venture promoted by Baba Ramdev, has launched noodles aiming to take on Nestle's Maggi which has returned to the market after a 5-month ban.

The venture plans to set up six manufacturing plants for 'Patanjali Atta Noodles' to add to the existing unit based in Haridwar as looks to cater to more states.

"By the end of December, our noodles will hit one million stores. We are ramping our production capacity," Ramdev told reporters while unveiling the ‘Patanjali Maggi’.

In next one year, Patanajali Ayurved will set up noodles manufacturing plants in the NCR, Madhya Pradesh, Karnataka and Andhra Pradesh, he said without specifying investment details.

Patanajali has priced its noodles of 70 gram pack at Rs 15, claiming it to be cheaper from competitors.

"It is Rs 10 cheaper from our rival noodles, which are selling atta noodles at Rs 25," he said.

Nestle India had relaunched its Maggi noodles in the market last week after Bombay High Court had lifted ban on it imposed by FSSAI and Maharathstra FDA.

Ramdev said the company Patanajali Ayurved would also foray in childcare, cosmetics products and health supplement by the end of this year.

"We will launch baby care under 'Shishu Care' brand, beauty care products under 'Saundrya' brand and health supplement powder under 'Power Vita' brand by the end of December," he said.

The company had sales turnover of Rs 2,007 crore in 2014-15 and expects to reach Rs 5,000 crore this year.

The National Consumer Disputes Redressal Commission has ordered testing of around 13 samples of Maggi noodles at the Central Food Technological Research Institute in Mysuru to determine if they contained any lead and monosodium glutamate.

The 13 samples are from seven separate batches. The court asked the central laboratory to complete the test within four weeks only if possible, reported PTI.

The order came soon after Nestle agreed for testing its Maggi noodles samples only in a government-accredited laboratory.

Nestle India Ltd told the court that permissible amount of natural monosodium glutamate will be found in the samples but there will be no added MSG in its products.

The court added that the lab will test both the noodles and the taste-maker inside the packet separately.

The court was hearing a class action suit filed by the centre, seeking damages worth Rs. 640 crore, after tests conducted by some States found more-than-acceptable levels of lead in Maggi noodles.

The government had brought 25 samples of Maggi products, out of which only 13 will be sent to the Mysuru lab. Nestle said rest of the samples were either damaged or duplicate.

Antonio Helio Waszyk, Chairman, Nestle India is retiring from the group after 38 years of service on Thursday.

Today the company in a filing to the BSE said its Chairman and non-executive director Antonio Helio Waszyk will relinquish as a director of the company.

"Antonio Helio Waszyk, Chairman and Non-Executive Director of the company have relinquished his office as a director of the company with effect from October 1, 2015 consequent upon his retirement from Nestle Group," said Nestle India.

Waszyk, who is a Brazilian national, had joined the Nestle Group in November 1977. Waszyk was appointed as non-executive Chairman of Nestle India on October 1 2013. He had relinquished the office as Managing Director of the company on September 30, 2013.

Nestle India, which was always very concerned about the employee benefit has announced a new maternity protection policy extending maternity leave to up to six months.

The FMCG major has also included benefits like employment protection, flexible working arrangement and access to breastfeeding rooms during working hours.

The Nestle India said that it has launched a series of initiatives coinciding with the 'World Breastfeeding Week'.

"New mothers need support so that they can continue breastfeeding,” shared Binu Jacob, GM Nestle India nutrition.

The group has initiated an awareness campaign to reach out to fathers, grandmothers and employers.

They want to showcase the share household responsibilities, taking care of the baby and creating conducive work environment, which in turn can help a mother breast feed her child for longer.

It has also said it will install 500 lactation booths across the country, besides building community support.

The manufacturer of Maggi instant noodles, Nestle India, today again told the Bombay High Court that it was ready for an independent lab testing of the product provided the tests were carried out in the presence of a reputed scientist, reported PTI.

The division bench of Justices V M Kanade and B P Colabawala, while hearing Nestle's petition against the 5th June order of Food Safety Standards Authority of India (FSSAI) banning nine variants of Maggi, today asked whether the company was ready for fresh independent tests.

Iqbal Chhagla, Nestle's lawyer said that the company was satisfied but the tests should be conducted in the presence of a renowned scientist and the samples available with the company should be used.

Maharashtra Food and Drugs Administration, Darius Khambata and the FSSAI counsel sought time till tomorrow to take instructions from their clients. Khambata also contended that one of the samples must be from the lot collected by state FDA.

The judges also said that they proposed to order independent testing of Maggi and sought the parties' views.

The Nestle lawyer alleged that FSSAI and FDA had not followed the principles of natural Justice by not giving a hearing to the company before banning Maggi on the ground of lead content in it being beyond the permissible limit.

Moreover, Chhagla said that only three variants were tested and the regulators prohibited all the nine variants of Maggi.

He further added that there was no substance in the allegation of FSSAI about the company destroying evidence by burning Maggi stock.

Food and Drugs Administration, Maharashtra, today argued in the Bombay High Court that Nestle India had burnt several tones of Maggi after the state's ban order was imposed on this food snack, instead of going in for a re-test of the samples, reported PTI.

"If the company was so confident about safe features of its product, it should have come forward and requested us to go for a re-test of the samples or it could have offered other samples for a fresh examination," FDA counsel Darius Khambata submitted before justices V M Kanade and B P Colabawala.

The court was hearing a petition filed by Nestle against FSSAI's on 5th June order banning nine variants of Maggi and Maharashtra government's order prohibiting their sale.

20 samples of Maggi were selected at random by FDA for the test and five of them tested positive for containing lead beyond permissible limit. This was enough for FDA to issue notice to stop production and sale of all the nine variants of Maggi, Khambata said.

He further argued that if the company suspected that the FDA reports were not correct then it could have made a complaint before the food regulator to send the samples to an accredited lab in Pune or Nagpur, instead of rushing to the high court to challenge the ban imposed on production and sale of the product.

"Instead, Nestle chose to send samples to labs in London, New York and Paris and placed 2700 test reports before us (FDA) to show that lead content was proper," he said. FDA counsel also rightly said on the ban that after tests when FDA found lead content in Maggi to be beyond permissible limit, it issued an order banning the product.

Additionally, FDA had sent lab test reports to Nestle but the company has not included these in the petition, thereby suppressing this fact from the high court, he said.

FSSAI and FDA both of them claimed that they had issued notices to Nestle India keeping in mind the health hazards that the product may have had due to the high lead content.  

The Food and Drugs Administration of Maharashtra has told the Bombay High Court that Nestle India the manufacturer of Maggi noodles in India has violated laws with the lead level in the popular instant snack being above the permissible limit, reported PTI.

The court was hearing a petition filed by Nestle against FSSAI's June 5 order banning nine variants of Maggi, and Maharashtra government's order prohibiting their sale.

"If they (Nestle) had problems with the FDA report of laboratory tests showing lead content in Maggi, they could have told us, following which we could have referred the case to other accredited labs. Instead, the company challenged our authority," argued FDA counsel Darius Khambata.

He further said, to a question by the judges, that of the 20 samples which were sent to the labs, only five tested positive.

To another question by the division bench of justices V M Kanade and B P Colabawalla, Khambata said FDA had tested only two variants of Maggi, but banned all the nine variants available in the market. He would continue the argument tomorrow.

FSSAI had earlier argued that it had not banned Maggi, but only asked the company to stop the manufacture and sale as it contained lead beyond the permissible limit.

FSSAI also said that it was ready to give a hearing to the company.

Both FSSAI and FDA have claimed that they had issued notices to Nestle India keeping in mind the health hazards the product may have had due to the high lead content.

Nestle has argued that a particular batch may have contained lead beyond permissible limit but the blanket ban was "unfair and illegal".

Food Safety Standards Association of India (FSSAI) argued in the Bombay High Court that a mere suspicion about a food snack being sub-standard in quality would be a reasonable ground to take appropriate steps to stop the sale of the product, reported PTI.

Anil Singh, FSSAI Counsel stated that after a bench of Justices V M Kanade and B P Colabwala raised a query whether the suspected food was unsafe for consumption or stop the sale of the entire product line.

The court was hearing a petition filed by Nestle India against FSSAI’s June 5 order banning nine variants of Maggi and Maharashtra government’s order prohibiting the sale of Maggi.

Anil Singh, senior counsel and acting Advocate General of Maharashtra, said that in the case of Maggi there have been violations of law. Maggi’s label is deceptive as it said “No MSG” in contents and presence of lead in the product is beyond permitted.

The company claimed that it had tested its product in 2700 laboratories in India and also in abroad and the tests have indicated that the lead content was less than the allowed limit of 0.5 percent.

Nestle India is in the process of resuming exports of its Maggi instant noodles to various global markets after Bombay High Court ordered it for the same last week.

The company has started the logistical arrangements to resume the exports.

The instant noodle was banned in India on June 5 by the central food safety regulator FSSAI over presence of lead beyond permissible limit as well as taste enhancer monosodium glutamate (MSG)

"The logistical arrangements to resume exports have begun after Tuesday's decision by the Bombay High Court which clarified that the export of Maggi noodles could continue," Nestle said in a statement.

The FSSAI order was later challenged by Nestle India before the Bombay High Court. The ban, however, continues for Maggi instant noodles in the domestic market.

Nestle also said that Canadian authorities have given clean chit to its instant noddles brand after finding no health related hazard.

"We welcome the fact that the Canadian Food Inspection Agency's investigation did not find any health risk associated with the consumption of Maggi noodles sold in Canada," Nestle said.

Earlier this week, food safety regulators in countries including the UK, Singapore, Australia and New Zealand which have also gave a clean chit to cleared the product, said it was safe for consumption.

Nestle further added that noodles made for the export market are produced on the same manufacturing lines as those for the Indian market.

"We use the same recipes and raw materials as we use for domestic markets, although Canada requires a different kind of salt to be used. Packaging materials are designed to meet the regulatory requirements of each importing country," Nestle said.  

The Bombay High Court today allowed Nestle India to export Maggi noodles after Food Safety and Standards Authority of India (FSSAI) said it had no objection to the company selling the product abroad though it stood by its decision to ban nine variants of the food snack in the country for being hazardous to public health.

"Why blame us...If the company claims that its product is safe and follows the safety standards then let them export it instead of destroying," FSSAI counsel Mahmood Pracha argued before a bench of Justices V M Kanade and B P Colabawala.

The court was hearing a petition filed by Nestle India challenging the impugned order of June 5 passed by FSSAI banning nine variants of the popular instant food snack. It had also questioned a similar order by the Maharashtra government prohibiting the sale of the same products on the ground that they were unsafe and harmful for the health of people.

As the suggestion came from FSSAI that it had no objection to the company exporting Maggi to other countries, the high court gave liberty to Nestle India for selling the products outside India if it wanted to, and subject to compliance of rules and health and food safety standards.

Nestle's counsel Iqbal Chhagla said by the end of the month, the company would destroy 17,000 crore packets of Maggi. Of these, 11,000 crore packets are being recalled from the market, he said.

The Maharashtra government submitted that Darius Khambata would appear on its behalf and sought a short adjournment, following which the bench posted the matter to July 14.

Advocate Sumedha Rao intervened in the matter, saying that Nestle India should come out with adequate funding to provide protection to consumers. However, the court did not allow her plea, saying that she can file a separate petition instead of intervening in Nestle's petition.

Meanwhile, FSSAI and other respondents filed affidavits to oppose Nestle's petition seeking relief from the ban of Maggi products.

The HC had earlier refused to grant relief to Nestle by rejecting its plea for stay of the impugned orders of the food regulator banning nine variants of Maggi noodles.

The court was of the view that Maggi products had already been withdrawn by the company from the shops and hence, there was no need to grant a stay on the ban.

In its 60-page affidavit, FSSAI justified its June 5 ban on Nestle India's '2-minute Maggi noodles' and questioned the company's safety claims.

FSSAI contended that the "present situation has arisen only because the company has failed to adhere to its own declared policy and principles".

Barring the fact that Nestle has been manufacturing and selling Maggi for the last 30 years, its other claims of having in place "strict food safety and quality control at all Maggi factories..." is "incorrect", the FSSAI affidavit said.

"If for the sake of argument it is presumed that all the safety claims regarding its manufacturing activities and processes are true, then the widespread presence of lead, a known poison, in its products can only be presumed to be intentional. It is impossible that such high levels of lead can escape the scrutiny of a reasonably well-equipped laboratory," FSSAI argued.

Nestle had argued that the ban was "unauthorised, arbitrary, unconstitutional" and had violated principles of natural justice since it was not allowed a proper hearing.

FSSAI denied all the contentions and said the company was given a hearing and that the show-cause notice was issued only for Nestle to show why its products, which are non-standardised and require government approvals in law, ought to be approved for the future.

"The fact that the petitioners have refrained from filing chart summary test reports and results conducted on Maggi since October 2014 can only create suspicion," it said.

The FSSAI CEO passed the order against Maggi in larger public interest of consumers and the duty is cast by law "to ensure wholesomeness of food in India." It also said that the state ban was passed "independent of the FSSAI order after full application of mind".

FSSAI said that since Nestle India had agreed to remove the 'no added MSG' label, "raising this issue again in court only goes to show that it does not intend to stick to its stand".

It said the Food Safety Standards Act of 2006 gives it ample power to act against a food product found unsafe after tests across the country gave "overwhelming evidence of product being unsafe".

FSSAI argued that Nestle's claim of its private lab tests proving safety of Maggi, can be legally challenged only in a suit and not in a writ petition, in any case.

Mizoram government has sent samples of Maggi instant noodles from the state to the Assam Public Health Laboratory in Guwahati, a senior state health department official said to PTI.

Joint Director (Food and Drugs Administration) Lalsawma told that the samples were sent yesterday as Mizoram does not have testing facilities to determine food safety.

Lalsawma said that the laboratory would send its report and findings to the Mizoram health department which would be submitted to the Food Safety and Standard Authority of India (FSSAI).

Though the state government did not ban the Nestle product, the company continued recalling its product from the state.

He said that the recalling process progressed well but recalling all the products from all the remote villages took time.