Nestle India Ltd. · NSE:NESTLEIND
Nestle India — Investor Presentation (February 2025)
74 slides from Nestle India's investor presentation, Feb 4, 2025
Slide 1: Nestlé India Limited exchange filing cover letter
Nestlé India Limited (CIN : L15202DL1959PLC003786) Nestlé House Jacaranda Marg ‘M’Block, DLF City, Phase – II Gurugram – 122002, Haryana Phone 0124 - 3940000 E-mail: investor@in.nestle.com Website: www.nestle.in PKR:SG:JK: 112:2024-25 4th February 2025 BSE Limited (BSE) National Stock Exchange of In
Slide 2: Our Path to Progress
Our Path to Progress Analyst and Institutional Investors Meet, February 04, 2025 Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India Analyst and Institutional Investor Meet, February 2025
Slide 3: Disclaimer
Disclaimer • Except for the historical financial information contained herein, this presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward-looking statements. You are cautioned not to place undue reliance on these forward-looking
Slide 4: Today we will discuss
Today we will discuss Our consistent growth story The rising India opportunity Delivering on our strategy – Virtuous Circle and 5Ps Key takeaways Analyst and Institutional Investor Meet, February 2025
Slide 5: Our Purpose
Our Purpose Unlocking the power of food to enhance quality of life for everyone, today and for generations to come Analyst and Institutional Investor Meet, February 2025 x Analyst and Institutional Investor Meet, February 2025
Slide 6: Our consistent growth story
Our consistent growth story Analyst and Institutional Investor Meet, February 2025
Slide 7: Deeply entrenched in India
Deeply entrenched in India Legacy of 113 years 8,700+ 547,000 + ~14 million beneficiaries Employees Shareholders Societal initiatives 10,000+ 5.3 million outlets 280,000 9 Distributors & re-distributors Total reach Farmers Factories in India Analyst and Institutional Investor Meet, February 2025 *Da
Slide 8: Significant investment in India - 10th factory in Odisha
Significant investment in India - 10th factory in Odisha Capital expenditure % to sales 7.7 1.8 Sanand now 3rd factory producing confectionery CY 2015 FY 2023-24 Capacity expansion since Capacity for MAGGI, Coffee, Spent till date 2020 Chocolate 35% INR 5,500 + crore Analyst and Institutional Invest
Slide 9: Strong growth and financial performance
Strong growth and financial performance 2,093 Growth numbers ex. market cap. for 2015- 23 243 53 81 561 13 CY 2015 FY 2023-24 CY 2015 FY 2023-24 31/12/2015 31/12/2024 Profit from operations (INR Sales (INR billion) billion) Market Cap. (INR billion) 11.2% 15.1% 15.7% CAGR CAGR CAGR Analyst and Insti
Slide 10: Consistently outperforming the peers
Consistently outperforming the peers Sales PAT 23.2% 11.2% 10.5% CAGR Since 2015 11.2% (8 years) Nestlé India Peers Nestlé India Peers Analyst and Institutional Investor Meet, February 2025
Slide 11: Growth based on balanced portfolio
Growth based on balanced portfolio Milk Products Prepared Dishes and Powdered and and Cooking Aids Out of Home Confectionery Liquid Nutrition Beverages 39% 31% 16% 14% Contribution Contribution Contribution Contribution 10% CAGR 2015-24 6% 19% 14% 10% CAGR 2015-24 CAGR 2015-24 CAGR 2015-24 CAGR 2015
Slide 12: Driven by our penetration led growth strategy
Driven by our penetration led growth strategy 5.3 million retail outlets in 2024 Highest gains amongst peers in 2024 2016 2024 Analyst and Institutional Investor Meet, February 2025 Source: Neilsen RMS December 2024 Image attributed to Mint newspaper
Slide 13: Bolstered by aggressive digital outreach
Bolstered by aggressive digital outreach 51% media spend on digital in 2024 1.1 billion Mobile users 126% Total digital media spends since 2020 25 million grocery shoppers 86% socially influenced Analyst and Institutional Investor Meet, February 2025 Source: Google 2023 / FICCI Frames 2024/ Datarepo
Slide 14: Strengthening our household penetration
Strengthening our household penetration 52% households 30% households 2016 2024 2016 2024 Urban + Rural Analyst and Institutional Investor Meet, February 2025 Source: Kantar Household Panel December 2024
Slide 15: Leading to robust volume growth
Leading to robust volume growth Climate Action 705 9.5% CAGR CY2015- 269 23 Responsible Sourcing 2015 2016 2017 2018 2019 2020 2021 2022 2023-24 Domestic Volumes (‘000 tonnes) Analyst and Institutional Investor Meet, February 2025 2023-24 comprises of 15 months period from 01/01/2023 to 31/03/2024 a
Slide 16: Amplifying further our brand equity scores
Amplifying further our brand equity scores 2020 2024 2020 2024 2020 2024 Analyst and Institutional Investor Meet, February 2025 Source: Kantar Brand Health Track 2024
Slide 17: Endorsed by category leading brands
Endorsed by category leading brands 12.5 Billion cups 4.5 Billion serves 3,700 Million fingers 33 Million tins 940+ One Nestlé Kiosks 20 million + footfall 2,100 Million units A Nestlé product reaches 2 out of 3 households in India Analyst and Institutional Investor Meet, February 2025 *Data from Ja
Slide 18: The rising India opportunity
The rising India opportunity Analyst and Institutional Investor Meet, February 2025
Slide 19: Significant headroom for growth
Significant headroom for growth India’s GDP Ranking Per capita Packaged food consumption United States 3.6X 3.3X China 2.9X Germany Japan #3 X India India Philippines China Malaysia Analyst and Institutional Investor Meet, February 2025 Source: IMF Oct 2024, Euromonitor 2024
Slide 20: With consuming class increasing significantly
With consuming class increasing significantly Per HH 2022 60 million 2030 High income > INR 30L Upper/Middle income 274 335 INR 5L-30L million million Lower/middle income INR 1.25L – 5L Low income INR <1.25L Total HH 311 million 356 million Analyst and Institutional Investor Meet, February 2025 Sour
Slide 21: Despite opportunities; challenges remain
Despite opportunities; challenges remain 1. Evolving consumer trends 2. Slowdown in consumption • Premiumization & Consumer growth experience • Commodity inflation • Rising health consciousness • Urban – rural consumption • Out of Home 3. Geopolitics Analyst and Institutional Investor Meet, February
Slide 22: Our strategy: The Virtuous Circle
Our strategy To build on opportunities and address challenges The Virtuous Circle Analyst and Institutional Investor Meet, February 2025
Slide 23: Evolving consumer trends
1. Evolving consumer trends #1 Premiumization & consumer experience #2 Rising Health consciousness #3 Out of home Analyst and Institutional Investor Meet, February 2025
Slide 24: Aggressive premiumization as a journey
#1 Aggressive premiumization as a journey …… for enhanced consumer experience • Premium products outpacing category growth • Nestlé has the brand portfolio to deliver INR 7,500 crore Size of prize 16% Nestlé Premium portfolio CAGR since 2015 Premiumization trend universal across urban and rural Anal
Slide 25: Leveraging the premiumization trend
#1 Leveraging the premiumization trend Milk products and Nutrition Prepared dishes and cooking aids Powdered and Liquid Beverages Confectionery Pet Care Analyst and Institutional Investor Meet, February 2025
Slide 26: Leveraging the power of global trusted brands
#1 Leveraging the power of global trusted brands Competitive advantages • Deep consumer insights #2 • Portfolio covers consumer landscape • World class R&D Global share 1 Power of ‘Pets’ Power of Purina Power of Nestlé 5th largest India’s ranking in pet population globally 2 Analyst and Institutiona
Slide 27: Elevating the coffee experience with NESPRESSO
#1 Elevating the coffee experience with ‘NESPRESSO’ Delighting consumers with original and professional range Made in Switzerland 150,000 coffee farmers across 18 countries including India NESPRESSO website now Live NESPRESSO Boutique Delivering Pan India across 16,000+ pin codes Coming soon…. Analy
Slide 28: Science to address rising health consciousness
#2 Science to address rising health consciousness INR 3,400 crore INR 24,000 crore Size of prize Medical Nutrition & General Wellness Joint Venture with Dr. Reddy’s Largest global R&D infrastructure in foods and beverage industry Milk products and Nutrition $ 1.8 billion R&D cost CY2023 4,000 + Empl
Slide 29: Out of Home market expected to double by 2030
#3 Out of Home market expected to double by 2030 Gen Z & Millennials FS market to get more Cafés driving coffee seeking organized in coming years culture new food experiences ------------ ‘Nestlé prepared with’ portfolio --------- Analyst and Institutional Investor Meet, February 2025
Slide 30: Promising exciting Out of Home experiences
#3 Promising exciting Out of Home experiences Freshly brewed coffee & tea machine: Expanding branded collab with marquee Retail One : KitKat break zone ‘Compatto’: customers Out of Home coffee solutions: NESPRESSO Curated ‘Made with KITKAT’ menu Analyst and Institutional Investor Meet, February 2025
Slide 31: Innovation our engine for growth
#3 Innovation our engine for growth Ambition 10% Contribution to Sales in 6.5 7 medium term Climate Action 6.0 6 ~150 5 New products 4 launched in last 3 9 years 6.5% Contribution to 1.5 2 Responsible sales Sourcing 1 2016 2017 2018 2019 2020 2021 2022 2023-24 9M 2024- 0 25 New products Sales Contri
Slide 32: Slowdown in consumption growth
2. Slowdown in consumption growth #1 Commodity inflation #2 Urban-rural consumption Analyst and Institutional Investor Meet, February 2025
Slide 33: Food inflation continues to hurt consumption
#1 Food inflation continues to hurt consumption Food CPI While headline inflation is CPI moderating, high prices persist on select agri commodities Responsible Sourcing Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Analyst and Institutional Investor Meet, February 2025 Source: MOSPI
Slide 34: Unprecedented commodity inflation
#1 Unprecedented commodity inflation 187 Milk 279 Cocoa 20% Coffee 2% 149 13% 123 100 100 77 100 105 2016 2020 2024 2016 2020 2024 2016 2020 2024 188 Edible Oils Wheat Packaging 13% 11% 10% 140 126 125 113 106 100 100 100 2016 2020 2024 2016 2020 2024 2016 2020 2024 Note: Year values have been index
Slide 35: Pointed efficiencies across value chain
#1 Pointed efficiencies across value chain Savings (INR billion) 1.9% Savings % to sales 3.8X 1.5% Buying efficiencies 1.0% 2X Manufacturing and conversion cost efficiencies X Distribution cost 2016 2017 2018 2019 2020 2021 2022 2023 2024 Accelerated Calibrated consumer insight- ~7,700 projects sinc
Slide 36: Slowdown in growth; rural outpacing urban
#2 Slowdown in growth; rural outpacing urban 14 12 Urban 16 10 14 12 8 10 6 Rural 8 6 4 4 2 2 0 0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 F&B growth F&B Urban-Rural growth Urban unemployment Tepid real wage growth Post COVID mod
Slide 37: Continue to expand outlet coverage
#2 Continue to expand outlet coverage Highest gains amongst peers in 2024 5.3 Total reach (Nielsen) 2024 3.6 1.7 Indirect reach 2023-24 5.2 3.6 1.6 Direct reach 2022 5.1 3.6 1.5 2021 5.1 3.7 1.4 2020 4.7 3.3 1.4 Responsible 4.6 2019 1.3 3.3 Sourcing 2018 4.5 3.2 1.3 2017 4.2 2.9 1.3 2016 4 2.7 1.3 A
Slide 38: Our comprehensive RUrban strategy
#2 Our comprehensive RUrban strategy 1 2 3 4 Infrastructure Consumer Visibility Portfolio connect Technology Analyst and Institutional Investor Meet, February 2025
Slide 39: Accelerating RUrban presence
#2 Accelerating RUrban presence Total village coverage Distribution touchpoints Climate Action 200,500 208,500 21,915 165,367 16,924 14,872 110,200 12,331 68,578 2020 2021 2022 2023-24 9M 2024-25 Responsible 2021 2022 2023-24 9M 2024-25 Sourcing 7,405 3.6 million* Towns covered Total outlet reach (R
Slide 40: Backed by activation and feet on street
#2 Backed by activation and feet on street HAAT activation Feet on the street 50,000 5,000 45,000 4,500 40,000 4,000 3,250 3,400 35,000 30,175 3,500 3,020 2,211 2,419 20,605 30,000 3,000 25,000 20,000 17,900 2,500 2,000 15,000 1,500 2,502 10,000 1,000 5,000 500 - - 2021 2022 2023-24 9M 2024-25 2020
Slide 41: Managing increasing competitive intensity in RUrban
#2 Managing increasing competitive intensity in RUrban Building awareness of taste Launched variety at INR 10 and quality Offering value on INR 7 Ensuring visibility in stores Analyst and Institutional Investor Meet, February 2025
Slide 42: Rapidly accelerating our e-commerce footprint
#2 Rapidly accelerating our e-commerce footprint Targeted media/communication Portfolio tailored to shopper needs Outcome intervention 8.5% Contribution % in 2024 Vs. 1% Brand/ Co-create Thematic / Leading Platform Events in 2016 Holistic supply chain approach for Q-Comm 32.6% Premium Coffee Wet Cat
Slide 43: Bringing the Virtuous Circle to life
Bringing the Virtuous Circle to life Purpose : Inspiring People : Empowering Planet : Embracing individuals towards greater employees and instilling sustainable practices to trust and responsibility. diversity and inclusion reduce environmental impact Partnerships : Building Performance : Strong per
Slide 44: Performance: Creating value for all stakeholders
Performance Creating value for all stakeholders Analyst and Institutional Investor Meet, February 2025
Slide 45: Penetration led volume growth
Penetration led volume growth 9.5% Climate Action CAGR CY2015-23 705 411 411 269 Responsible Sourcing 2015 2016 2017 2018 2019 2020 2021 2022 2023-24 9M 2023-24 9M 2024-25 Domestic Volumes (‘000 tonnes) Analyst and Institutional Investor Meet, February 2025 2023-24 comprises of 15 months period from
Slide 46: Consistent organic growth
Consistent organic growth Domestic Sales (INR billion) 11.2% 250 Climate Action 233 160 +3% CAGR CY2015-23 137 141 200 140 120 150 100 80 100 75 Responsible 60 Sourcing 40 50 20 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023-24 9M 2023-24 9M 2024-25 *2016 growth is restated due to IND-AS implement
Slide 47: Accelerating profit from operations
Accelerating profit from operations Climate Action 22.0 15.1% 60 25 45 21.7 22.0 21.0 21.1 CAGR 20.0 40 50 CY2015-23 17.6 18.1 20 35 21.7 20.9 16.4 40 30 15 25 30 20 10 Responsible 20 15 Sourcing 10 5 10 5 0 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023-24 9M 2023-24 9M 2024-25 Profit from operat
Slide 48: Best in class return on equity
Best in class return on equity Return on average equity % 120 Climate Action 105.8 111.0 108.5 100 108.5 80 70.4 60 45.3 32.8 36.6 Responsible 40 19.9 20 Sourcing 0 2015 2016 2017 2018 2019 2020 2021 2022 2023-24 Analyst and Institutional Investor Meet, February 2025 2023-24 comprises of 15 months p
Slide 49: Our value creation journey continues
Our value creation journey continues Total Shareholders Return INR 2,093 billion (2015-2023) 314% Market Capitalization Annualized Return (incl Up 3.7 times; dividends; 2015-2023) INR 562 billion 1.4 times vs. FMCG Benchmark Index 17.1% Operating cashflow generated 3.1X 2015 USD 8.5 billion Dec 2024
Slide 50: Partnership: Growing together
Partnership Growing together Analyst and Institutional Investor Meet, February 2025
Slide 51: Growing together to go far
Growing together to go far ~4,500 280,000+ 10,000+ Farmers Distributors and re-distributors Suppliers 10+ Joint venture 5.3 million Direct and indirect Nestlé India and Dr. Retail outlets sustainability partners Reddy’s Analyst and Institutional Investor Meet, February 2025
Slide 52: Joining hands to enrich lives through Nutrition
Joining hands to enrich lives through Nutrition Combining synergies on product portfolio and distribution reach 49% 51% Integration successfully completed Double digit growth New launches on the anvil Analyst and Institutional Investor Meet, February 2025
Slide 53: Leveraging industry partnerships for logistics excellence
Leveraging industry partnerships for logistics excellence Strengthen Safety & Quality Grow customer centricity and State of the art racking, shuttle and automation growth 13 55% 1,500+ DCs transformed Sales covered Customers touched 50+ vendors 20+ authorities 1,000+ manpower Strong partnership Anal
Slide 54: People: Where people make the difference
People Where people make the difference Analyst and Institutional Investor Meet, February 2025
Slide 55: Nurturing an inclusive and diverse work culture
Nurturing an inclusive and diverse work culture Building an inclusive future Revitalizing onboarding Encouraging gender diversity • Fostering Diversity, Equity and • Revamped onboarding experience • Board of Directors - 50% women Inclusion • ‘People experience framework’ • Among the highest represen
Slide 56: People centered Nestlé
People centered Nestlé Nurturing young talent - Nesternship Investing in employee wellbeing Fostering valued relationships • Exposure to 2,300 + interns since • Mental health sessions extended to • Attrition rate 10% 2020 blue-collar employees & families • Sustained industrial relations • Building a
Slide 57: Planet: Committed to caring for our planet
Planet Committed to caring for our planet Analyst and Institutional Investor Meet, February 2025
Slide 58: Sustainable Nestlé
Sustainable Nestlé Climate Action Sustainable Packaging Climate Action Accelerating efforts No plastic ends in the landfills Caring for Water Responsible Responsible Sourcing Sourcing Making every drop count Sustainably sourced key ingredients Analyst and Institutional Investor Meet, February 2025
Slide 59: Committed to reducing Green House Gas Emissions
Committed to reducing Green House Gas Emissions Climate Action Responsible Sourcing GHG emissions 61% Water usage 46% Plastic neutral Energy usage 29% Generation of wastewater 60% since 2020 Analyst and Institutional Investor Meet, February 2025 For the period 2008 to 2023-24; Data per ton of produc
Slide 60: Environment friendly manufacturing boosts sustainability
Environment friendly manufacturing boosts sustainability Climate Action Responsible Biomass Boiler Sourcing Reduction in GHG emissions Reducing reliance on fossil fuels We procure 4% of stubble in Moga Creating additional income avenues Promotion of circular economy district for farmers Analyst and
Slide 61: Sustainable sourcing Coffee
Sustainable sourcing Coffee Climate Action Responsible Sourcing Regenerative agricultural 5,000 + coffee farmers ~55% coffee procured practices to address GHG engaged sustainably emissions Analyst and Institutional Investor Meet, February 2025 For the period 2008 to 2023-24; Data per ton of producti
Slide 62: Brand communication around sustainability
Brand communication around sustainability Climate Action 2-minute Safaai ke naam KITKAT Recyclable Wrapper Responsible Sourcing NESCAFÉ film – Earth day Analyst and Institutional Investor Meet, February 2025
Slide 63: Purpose: Staying true to our purpose
Purpose Staying true to our purpose Analyst and Institutional Investor Meet, February 2025
Slide 64: Being a force for good
Being a force for good Rural development Nutrition awareness Project Vriddhi – 18,000 beneficiaries Project Jagriti – 12.7 million + beneficiaries Nestlé Healthy Kids - 600,000+ adolescents, 56,000 parents Environment ~14 million* Water & Sanitation Project Hilldaari – 7 cities beneficiaries ~300,00
Slide 65: 15 years of Nestlé Healthy Kids
15 years of Nestlé Healthy Kids Aimed at adolescents Promotes healthy 600,000 adolescents and parents lifestyles 56,000 parents Analyst and Institutional Investor Meet, February 2025
Slide 66: 5 years of Project Vriddhi
5 years of Project Vriddhi Water and sanitation Strengthen community led Raising nutrition awareness ~ 18,000 beneficiaries rural development Setting up digital learning across 14 villages centres Analyst and Institutional Investor Meet, February 2025
Slide 67: Plastic waste management: Project Hilldaari
Plastic waste management: Project Hilldaari Diverted ~15,700 MT of Professionalized 1,100+ Present across 7 cities waste from landfill waste workers Analyst and Institutional Investor Meet, February 2025
Slide 68: Digital: Our mantra for the future
Digital Our mantra for the future Analyst and Institutional Investor Meet, February 2025
Slide 69: Our approach to digital transformation
Our approach to digital transformation CONSUMER CUSTOMER VALUE CHAIN EMPLOYEE Personalized experiences at moment Go deeper to capture opportunities by Drive efficiencies at scale through “Everyday AI” that matter using Gen-AI, PII & Tech use of future-ready digital connected powering employees in de
Slide 70: Power of technology, analytics & interconnected data
Power of technology, analytics & interconnected data AI Powered Content Creation & AI powered eB2B personalized experience Setting the foundation for Industry 4.0 Gen-AI for Everyday Transformation Translation Custom Bots for employees Vision Analytics @ core of people safety Accelerated RUrban Enga
Slide 71: Nestlé India AI journey
Nestlé India AI journey All Human AI at Workflow AI at Workflow AI to Manage Transformative AI AI at Task Level AI at Task Level No AI Level Level Work-arounds Level 0 Level 1 Level 2 OT/E-com Off- MIDAS GPT Level 3 Demand Forecast take Model Level 4 Model GT MROI - Marketing Return on Nutri-coach C
Slide 72: Key takeaways
Key takeaways 01 Core strategies and consistent results Competence building in changing 02 contexts 03 Technology plus – digital and more Analyst and Institutional Investor Meet, February 2025
Slide 73: Key takeaways
Key takeaways Premiumization and growing the core as 04 key strategies Sustainable partnerships and 05 sustainable environment 06 People bias and execution focus Analyst and Institutional Investor Meet, February 2025
Slide 74: Consistency Collaboration Commitment
Consistency Collaboration Commitment …Our Promise. Analyst and Institutional Investor Meet, February 2025