Nestle, the largest packaged food company globally, stated that commodity prices are encountering unparalleled challenges in both coffee and cocoa, with prices reaching all-time highs amid a continuous upward rally.
The producer of Maggi noodles, Nescafe coffee, and KitKat chocolate wafer bars anticipates a rise in milk prices owing to the expected harsh summer conditions.
The FMCG major stated that cereals and grains are experiencing a structural cost increase supported by MSP.
Continue Exploring: Rising cocoa prices squeeze profits of chocolate and ice cream giants: Amul, Baskin Robbins, and Havmor navigate pricing challenges
Nestle India revealed plans to establish a joint venture company with Dr. Reddy’s, with the latter group holding a 51% stake and Nestlé India owning the remaining 49%.
The joint venture is anticipated to commence operations in the second quarter of the fiscal year 2024-25.
Nestle India will retain the right to enhance its shareholding up to 60% after six years at a Fair Market Value. Dr. Reddy’s commitment includes maintaining a minimum 40% shareholding even after Nestle exercises its call option.
Furthermore, Nestle is poised to introduce Nespresso in India by the end of 2024. Following the approved launch of Nespresso in the country, the company plans to roll out its products, including machines and capsules, by the end of the same year.
Nestle India reported a larger-than-expected gain in quarterly profit on Thursday, boosted by higher product prices as well as demand for its packaged food goods.
Nestle’s Indian arm posted a net profit of 9.34 billion rupees ($112.03 million) for the three months that ended March 31, compared to 7.37 billion rupees a year earlier.
Continue Exploring: Nestle India approves 0.15% annual increase in royalty payments to parent company for next five years
