FMCG major Nestle India on Friday (January 31) said it has added a new KitKat production line at its Sanand Factory in Gujarat, with a proposed annual capacity of 15,000 tonne. The company plans to complete the capacity expansion within FY25, investing approximately ₹1,100 crore through internal accruals.
The expansion aligns with Nestlé India’s broader capital expenditure plan of ₹5,800 crore between 2020 and 2025 for greenfield and brownfield projects. The investment aims to scale up production to meet growing demand. In addition to Sanand, the company also manufactures KitKat at its Ponda Factory in Goa.
Nestle India reported a 4.94% increase in net profit at ₹688.01 crore for the December quarter, which was marked by food inflation, and moderation in urban consumption. The company had posted a net profit of ₹655.61 crore in the October-December period a year ago, according to a regulatory filing from Nestle India.
Nestle India’s revenue from the sale of products was up 3.89% to ₹4,762.13 crore in the December quarter. It was at ₹4,583.63 crore in the corresponding period of the last fiscal year.
“This quarter, 3 out of 4 product groups, delivered healthy growth led by a combination of pricing and volume,” Chairman and Managing Director Suresh Narayanan said.
Commodity prices for its key commodity inputs such as coffee, cocoa and cereals and grains continue to be firm, though prices for edible oil, milk and packaging are stabilised now, he said.
Despite the factors, Nestle India’s “Key brands continue to perform and this augurs well in a challenging environment,” said Narayanan, the outgoing CMD of the company.
In the December quarter, total expenses of Nestle India were up 6.18% to ₹3,861.91 crore. Nestle India’s domestic sales were up 3.23% to ₹4,566.05 crore, as against ₹4,421.79 crore in the corresponding October-December period.
Shares of Nestle India Ltd ended at ₹2,313.05, up by ₹94.30, or 4.25% on the BSE.
Source: www.cnbctv18.com