Nestlé is known as the world's largest food and beverage company. It's loved for its variety of products like coffee, cereals, snacks, and pet food, with brands like Nescafé, KitKat, and Maggi.
Fast-moving consumer goods (FMCG) major Nestle's India unit Nestle India has announced a significant expansion of its confectionery manufacturing capacity by adding a new KitKat production line at its Sanand factory in Gujarat. The company says the move will boost its annual output by 15,000 tonnes once the project is completed, which is expected to happen within the 2024-25 financial year.
The investment of around Rs 1,100 crore will come from Nestle India’s internal accruals. The establishment of this new production line is in line with Nestle India's larger capital expenditure strategy, which calls for Rs 5,800 crore in both brownfield and greenfield projects between 2020 and 2025. The company's Ponda facility in Goa also produces KitKats, and the expanded Gujarati capacity is intended to satisfy the rising demand for its well-known chocolate wafer brand. The company reported a net profit of Rs 688.01 crore for the December quarter, up from Rs 655.61 crore a year earlier. Sales of products stood at Rs 4,762.13 crore, showing a rise over the previous December quarter’s Rs 4,583.63 crore. In the December quarter, Nestle India's total expenses jumped by 6.18% to Rs 3,861.91 crore. The company's domestic sales were also up 3.23% to Rs 4,566.05 crore, as against Rs 4,421.79 crore in the corresponding October-December period.