QUOTE AND NEWS
The Economic Times  May 14  Comment 
Citigroup view Nestle India as among the best plays on India consumption growth over the long term.
The Economic Times  May 14  Comment 
In the last three quarters, Nestle’s domestic sales growth has been only in single-digits due to poor volume growth.
The Hindu Business Line  May 13  Comment 
FMCG major Nestle India has posted a net profit of Rs 279.1 crore for the first quarter ended March 31, 2013. It had posted a net profit of Rs 275.7 crore in the same quarter last fiscal...
The Hindu Business Line  May 13  Comment 
Reuters  Apr 10  Comment 
Reuters Market Eye - Shares in India's biggest cigarette maker ITC are the cheapest compared with large-cap domestic consumer good peers such as Hindustan Unilever, Nestle India and Asian Paints, according to Thomson Reuters StarMine data.
Reuters  Mar 25  Comment 
Reuters Market Eye - Shares in Nestle India Ltd fall 1 percent after the Indian unit of Nestle Group said late on Friday it would implement a staggered increase in royalty payments of 0.2 percent per year over the next five years to the parent...
The Hindu Business Line  Mar 24  Comment 
The stock of Nestle India may come under pressure this week as the company increased its royalty rate to 4.5 per cent from the earlier 3.5 per cent of sales. FMCG major Nestle India's boar...
The Economic Times  Mar 22  Comment 
Nestle India said the increase in royalty will be at 0.20% a year for five years, effective from January 1, 2014.
The Economic Times  Mar 21  Comment 
HUL, Colgate Palmolive, Tata Global Beverages, Nestle India, Jubilant Foodworks and United Breweries have declined varying - from 5% to 28%.
The Economic Times  Feb 25  Comment 
Daiwa Capital Markets had maintained its ‘Sell’ rating on ABB with a target price of Rs 431.
The Hindu Business Line  Feb 20  Comment 
Nestle India posted net profit of Rs 1,068 crore up 11 per cent for the full year 2012 compared with Rs 962 crore in 2011. The company’s net sales stood at Rs 8,302 crore and grew by 10....




 

Nestle India is the third largest FMCG company in India after Hindustan Unilever and ITC. It dominates the culinary (Maggi) and the hot beverages (coffee - Nescafe) segments in India. It also has a significant presence in baby foods and has emerged as a strong No. 2 player in the dairy segment (after Amul) and chocolates (after Cadbury’s). In each of the segments, the company has been growing through new product launches and new price point presence. In the past 5 years, Nestle’s topline and net profits have recorded a CAGR of 15% each.


For 1HCY09, the topline grew by a strong 16% YoY as sales improved across most categories and channels. In the half year period, the domestic segment grew by 19% YoY, while exports fell by 14% YoY. The company continues to ride on the urban growth story aided by product development, innovation and renovation. The operating margins remained stable due to operating efficiencies. Excluding the extraordinary item, the bottomline in 1HCY09 grew by a 28% YoY due to lower raw material costs.


Nestle has ear marked a capex of Rs. 6 bn in FY09 towards expanding its chilled dairy portfolio, capacity expansion at its existing manufacturing facilities in Moga (Punjab) and Samalkha (Haryana), sprucing up its distribution network and new R&D. The company is also considering a re-entry into the water business by acquiring an existing brand. The food processing business in India is at a nascent stage. Currently, only about 10% of the output is processed and consumed in packaged form thus highlighting the huge potential for growth. Existing markets are not fully tapped and the company can increase presence by penetrating further. With India's demographic profile changing in favour of the consuming class, the per capita consumption of most FMCG products is likely to grow.

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