FMCG major Nestle India has announced a significant expansion of its KitKat production capacity with the addition of a new manufacturing line at its Sanand factory in Gujarat. The proposed annual production capacity of the new line is 15,000 tonnes, and the company aims to complete the expansion within the financial year 2024-25 (FY25). The project will see an investment of approximately ₹1,100 crore, which will be funded through internal accruals.
This expansion aligns with Nestle India’s broader capital expenditure (Capex) plan of ₹5,800 crore earmarked between 2020 and 2025 for both greenfield and brownfield projects. The investment is expected to scale up production capabilities to meet the growing market demand for KitKat and other confectionery products. Apart from Sanand, Nestle India also manufactures KitKat at its Ponda factory in Goa.
Nestle India reported a rise in net profit for the December quarter (Q3 FY24), with earnings reaching ₹688.01 crore. This increase came amid challenges such as food inflation and moderation in urban consumption. In comparison, the company had posted a net profit of ₹655.61 crore in the same period a year ago, as per its regulatory filing.
The company’s revenue from product sales grew to ₹4,762.13 crore in Q3 FY24, compared to ₹4,583.63 crore in the corresponding quarter of the previous fiscal year. Meanwhile, total expenses during the quarter increased to reach ₹3,861.91 crore.
Nestle India’s domestic sales recorded a growth reaching ₹4,566.05 crore in the December quarter, compared to ₹4,421.79 crore in the same period last year. The expansion at the Sanand factory is expected to help the company cater to rising consumer demand and further strengthen its position in India’s fast-growing confectionery segment.
The investment underscores Nestle India’s long-term commitment to expanding its manufacturing capabilities and optimising production efficiency in the country. With the new production line, the company is poised to reinforce its market leadership in the confectionery category, ensuring increased availability of KitKat for Indian consumers.
On January 31, 2025, Nestle India share price ended 4.25% higher at ₹2,313.05. Nestle India’s share price reached a 52-week high of ₹2,777.00 on September 27, 2024, and a 52-week low of ₹2,131 on January 29, 2025. As per BSE, the total traded volume for the stock stood at 1.74 lakh shares with a turnover of ₹40.34 crore.
At the current price, Nestle India shares are trading at a price-to-earnings (P/E) ratio of 66.31x, based on its trailing 12-month earnings per share (EPS) of ₹34.88, and a price-to-book (P/B) ratio of 55.88, according to exchange data.
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Published on: Feb 1, 2025, 8:37 AM IST
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