Company Profile:
Nestle India is a subsidiary of Nestle S.A., world's biggest food company and a leading Swiss giant. With seven factories and a large number of co-packers, Nestlé India is a vibrant company that provides consumers in India with products of global standards. Nestle manufactures a wide variety of processed food products - milk products and nutrition, coffee, chocolates & confectioneries and prepared dishes & cooking aids .Company has a wide presence across India with its portfolio of strong brands (Nescafe, Maggi,Milkybar,Milo,KitKat,Bar-one,Milkmade,Nestea,Nestle Milk,Nestle Fresh 'n' Natural Dahi and NESTLE Jeera Raita.). The company is focused on growing its market share through renovation and innovation of its existing brands in India.
Nestle has reported topline growth of 26.4% with its net sales for the Q1CY08 at Rs 1090.9 crores as compared to Rs 863.08 crores in Q1CY07 on the back of continuous brand innovation strategy. The net profit stood at Rs 160.15 crores showing a strong growth of 47.7%. Company has improved over operating and PAT margins. Company also gets tax benefits in the quarter due to greater Maggi production at Pantnagar, Uttaranchal.
Investment Positives:
Nestle has the right set of product portfolio, strong brand image and excellent distribution network to sustain its growth momentum on the back of favorable demographics, growing urbanization and the transition to organized retail sector.
Nestle enjoys a big share in the growing Indian processed foods sector. Nestle can reap benefits from investments in organized retail and distribution infrastructure in India. With the continuous brand innovation and aggressive business strategy Nestle is on the way to get more market share in India to encash the coming opportunities in the space.
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