INDIA – The maker of Maggi noodles and Nescafé coffee, Nestlé, is looking to expand its factory footprint in India, the second-largest market in Asia by sales, to ten as the demand for its products continues to soar.

The Swiss food and beverage giant is scouting for the perfect site to set up its next manufacturing project in the country.

A spokesperson for the company explained that they are weighing up a part of India where it does not have a factory, and it could certainly be to the east of the country.

“We are weighing up a part of India where it does not have a factory. One of the areas that we do not have a representation of a factory is in the east,” the spokesperson said.

 “If we can get a good geography and locational fit, we would like to look at the east, but now, [we are] evaluating other regions too to set up the tenth factory. We will make up our minds sooner than later. There is some preliminary work that has been done, and then we will make an announcement.”

Nestle in India is headquartered in Gurgaon, Haryana, with 9 manufacturing facilities that produce food, beverages, chocolate, and confectioneries; and 4 branch offices.

In the first quarter, Nestle’s profit rose 24.7% year-on-year (YoY) to Rs 737 crore in India, while total sales jumped 21.3% to Rs 4,808 crore.

Nestle India Chairman and Managing Director Suresh Narayanan said it is the highest growth for the company in a quarter in the last 10 years after excluding the exceptional quarter in 2016, which was off a low base in 2015.

“All our product groups delivered double-digit growth, a notable feature in these past four quarters in a row. Confectionery led by KITKAT, and MUNCH posted a strong growth, supported by consumer-led campaigns, innovation, and engagement,” he said.

Narayanan added that beverages turned in another quarter of robust growth and market share gains led by Nescafe.

The company said it was witnessing early signs of softening of commodities such as edible oils, wheat, and packaging materials. However, the cost of fresh milk, fuels, and green coffee is expected to remain firm because of the continued increase in demand and volatility, it said while announcing the quarterly results.

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