Nestle India stated that there is a slowdown in the consumption of Fast-Moving Consumer Goods (FMCG), but the company remains confident in its long-term growth trajectory.
During a meeting with investors, Nestle India Chairman and Managing Director Manish Tiwari noted that there is a slight decline in market growth rates, according to Nielsen (Nielsen IQ), as well as the impact of food inflation.
Despite inflation and other factors posing obstacles, Tiwari expressed confidence in the company's ability to manage these short-term difficulties. He emphasized optimism regarding Nestle India's development in terms of market penetration, engagement with rural consumers, and premiumization.
He added that concerns persist regarding the current geopolitical situation, which causes disruptions in energy, packaging, the oil industry, shipping, and currency volatility.
Nevertheless, Tiwari stated that the team possesses sufficient resilience to overcome these challenges and continue delighting consumers in India, asserting that the company's growth path continues. He also noted that India represents one of the most attractive scenarios for long-term consumption.
In addition to efforts to expand rural reach, he informed investors that e-commerce is a growing sales channel, outpacing overall market growth.
Manish Tiwari reported that growth in the premium segment increased from 11% to 14%, and this segment is growing significantly faster than the overall figure, outpacing it by approximately 500 basis points.
The Chairman also noted that the rural market proved more resilient compared to the urban market. He added that the company has numerous packages available at prices ranging from 5 to 10 rupees.
On Tuesday, the share price of Nestle India closed at ₹1492.00 per share on the BSE.
