Nestle to invest Rs 600 cr in India in 2009

Subscribe to Oneindia News

New Delhi, Sep 26 (UNI) FMCG major Nestle today said it plans to invest Rs 600 crore in the country in 2009 for the expansion of its business here.

The company, which has alloted an investment of Rs 300 crore in the Indian market this year, would be doubling the investment in 2009 as part of its business strategy.

''This year we are investing Rs 300 crore in India and will double it to Rs 600 crore in 2009,'' Nestle India Chairman and Managing Director Martial Rolland said, adding that the investment would go in new R&D, advertising and capacity building.

He said India is one of the fastest growing markets for Nestle worldwide.

''The company is reinvesting and expanding in India and Nestle India will have all the financial resources to expand and grow from the parent company. In the years to come, there will be no limit to our investments in India and we are willing to invest as much as is strategically and economically sound,'' Nestle International Chairman Peter Brabeck told reporters here.

''Nestle's sales in India grew by 25 per cent in the first half of 2008 and the country contributes 1.5 per cent of Nestle's global turnover,'' he said.

Currently, the company has seven plants across the country.

Asked about foreign direct investment, he said India is one of the fastest growing economies and has an overall environment conducive for FDI.

The company expects the recent China milk scandal to positively impact its business as its products have been cleared by the Chinese authorities.

''All our products are 100 per cent safe...Sales in China are rather being favoured,'' Peter Brabeck-Letmathe told reporters here adding that its rather positive than negative.

Thousands of Chinese children have been hospitalised, sick from milk formula tainted with melamine, a cheap industrial chemical that can be used to cheat quality checks.

Nestle has said its milk products in China and Hong Kong are safe.

Mr Brabeck refused to comment on media reports that Nestle was talking to Hershey Co about buying all or part of the US chocolate maker.

UNI SR PD NS2244

Please Wait while comments are loading...