‘We made right investments – not just in asset, but people’ too: Suresh Narayanan bids farewell to Nestle India – Industry News

Addressing the company shareholders, Suresh Narayanan, Chairman and Managing Director, Nestle India, during the company’s 66th Annual General Meeting, talked about the company’s investment, growth, innovation and expansion, over the years. “We made the right investments— not just in assets, but in ideas and people. And we made responsible choices – choices that honored our values, sustained our growth,” he said. 

Suresh Narayanan will retire as chairman and managing director of the company with effect from the close of business hours on 31st July 2025. Further, on the recommendation of the Nomination and Remuneration Committee and the Board of Directors of the company, Manish Tiwary will be appointed as a non-retiring director and managing director of the company for a term of five consecutive years effective from 1st August 2025 to 31st July 2030. 

A decade of strong performance

Over the last decade, Nestlé India has achieved impressive growth:

Revenue CAGR: 10.3%

Operating Profit CAGR: 13.5%

Market capitalization increased 3.9 times

Total Shareholder Return (TSR) CAGR: 17.0%

Suresh Narayanan acknowledged that once seen as an urban company with a limited portfolio, Nestle India now has access to more households through penetration-led volume growth strategy rolled out in 2015. “We have added 1.3 million more retail outlets since 2016 with the highest gains amongst peers in 2024. The RUrban strategy began in 2019, and has increased RUrban distribution touchpoints to 28,240. Today we are present in approximately 209,050 villages,” he said. 

An expansive product portfolio

In terms of Nestle products market share, Suresh Narayanan said that Nescafé, in the last decade, strengthened its leadership position by gaining market share and bringing more than 43 million households into the coffee category, by expanding its reach both at the top and at the bottom. Further, once a muted business, Narayanan said, confectionery has tripled its business in the last 10 years. Kitkat too has doubled its market share. The Prepared Dishes and Cooking Aids business has doubled the Maggi business in India.

In the last 10 years, the Out-of-Home business moved from just being a ‘coffee vending business’ to a powerful portfolio business. “Our 960 Retail One kiosks are now located in colleges, hospitals, and tourist hotspots employing over 245 women and people with disabilities as food handlers,” he said. 

Investment and technology focus

The capex levels have increased from 1.8 per cent of sales in 2015 to 10.0 per cent of sales in the financial year ending 2024- 2025. “This not only demonstrates the focus on Indian consumers but also our commitment to manufacture in India and ‘Make in India’ as a theme,” he said. 

Technology, Narayanan said, plays a key role in boosting the company’s sales and distribution. With data analytics, the company has targeted specific markets and pin codes more effectively. The FMCG major has used AI to predict trends and customer needs.

“Through sales automation software, our salespersons know where to sell, which promotion to focus on and which outlet to concentrate on to enhance business. Our world class Distribution centers are racked, stacked, and fully technologically enabled. Our factories in India are environment-friendly and digitally connected with most contemporary technologies,” he added.