Nestle India's Ambitious Growth Plan: Doubling Revenue in Under 8 Years

Nestle India's New Chairman Outlines Vision for the Future

Manish Tiwary, the new Chairman and Managing Director of Nestle India, has announced an ambitious plan to double the company's revenue in less than 8 years. This is a significant acceleration from the previous 8-year cycle, during which the company's revenue grew from ₹10,000 crore to ₹20,000 crore.

Targeting ₹30,000 Crore Revenue by 2030

Tiwary believes that achieving ₹30,000 crore in revenue by 2030 is possible, as long as the company can sustain its market momentum. He emphasized that this growth will be pursued while maintaining the company's established margin band of 22-24%. According to Tiwary, business must be played with a net, balancing top-line expansion with bottom-line performance.

Fueling Growth through Advertising and Technology

To drive growth, Nestle India plans to increase its advertising expenditure at a rate faster than its top-line growth. However, Tiwary assured that this will not erode margins, as the company will leverage technology to drive optimization across the organization. He compared advertising spends to cholesterol, noting that it can be both good and bad, requiring a thoughtful and deliberate approach.

Key Pillars of Growth

• Pet food category: Tiwary identified this as a key area of interest, with plans to create the same level of trust with pet parents as the company has built with parents over generations.
• Newer businesses: Tiwary projects that Nestle's newer businesses, including Sly Professional, pet food, the DRL joint venture, and Nespresso, will grow at 2-3x the rate of its main portfolio.

Focus on Rural Business and Innovation

Tiwary highlighted the immense headroom for growth across all categories, with the highest monthly penetration for any of its products standing at just 16-17%. To tap this potential, the company will focus on growing its rural business at one and a half times the normal rate. The guiding mantra for the company will be bigger, bolder, fewer, with a focus on innovating and extracting more value from current brands like KitKat and Maggi noodles.

Leadership Philosophy

Tiwary emphasized three core principles: an unwavering focus on the consumer, leveraging technology for efficiency, and maintaining a bias for action. With these principles in place, Nestle India is poised for significant growth and expansion in the coming years.