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Preparing for the next growth curve

The Rs.9159 crore (2016) Nestle India Ltd is the market leader in instant noodles and baby food products in India and No. 2 player in the instant coffee and chocolates segment.

After re-launch of Maggi portfolio in November 2015, the company added other variants to regain the lost market share. By the end of December 2016, it claimed to have gained 60 per cent of the market share (it was about 75 per cent before the ban). The company has launched more than 30 products during the second half of 2016 across its segments. In beverages too, the company expects new products to fuel growth. Nescafe was its largest brand till mid-1990’s. It leads the instant coffee market of Rs.2501 crore with the Nescafe brand. However, it has lost market share to Bru (HUL’s brand) in the recent past. In order to focus on growth, the company has introduced Nescafe Sunrise Insta-Filter, Nescafe 3-in-1 and three variants each in Nescafe ready-to-drink and Nestea. It has also re-launched its malt-based beverage, Milo, which  is claimed to have 40 per cent less sugar than similar products, in the ready-to-drink format.

The company is planning to enter five new categories such as Nespresso (a coffee machine), Dolce Gusto (coffee capsule system), petcare, healthcare & skincare. It will introduce healthcare products suitable for nutritional needs of the elderly people in the country. Presently, little less than two-thirds of Nestle India’s revenue comes from the people below 40 years and rest mostly from infants and children.

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