Swizz FMCG major Nestle recently announced the plan of setting up its ninth Indian plant, exclusively for manufacturing Maggi noodles. The company is planning to execute the project at Sanand in Gujarat and it is expected to commence its operation in another 18 to 24 months.
Though the economic crisis in the country has massively impacted many industries, Nestle is hoping to register a decent growth in India. The Chief of Nestle India, Suresh Narayaran claims that they are poised for positive progress with at least ‘decent single digit’ growth.
The company is confidently hoping to tackle the economic slowdown across the country.
This issue would not significantly affect the company’s growth as its plays a very minor role in rural areas when compared to other players.
The FMGC sector has slowed down to 10 per cent from its growth of 16-17 percent which was encountered in the third quarter of 2018, and the growth expectation for the year would be one or two percent point slower than the original targets.
Narayan said, “Urban growth rates are not what they were before and double digit growth will be hard to achieve. There will be periods of slow growth but the consumption story in India is relatively more positive compared to many other countries.”
He further added, “Though the penetration levels are low, we still have runway for growth. We are now innovating five times faster than in the past and look forward to accelerate our rural footprints too.”
With increasing urbanization, the company is stepping up with the power of innovation. The company fairly believes to bring a reasonable volume growth led by innovation, which helps them tackle the economic slowdown. Further as a sign of its confidence, the company is assessing and coming up with ideas to invest more in chocolate and confectionary segments along with the investment is noodles production plan.