Dear Members,
2023 was a year of paradox. Notable milestones were achieved, leaving an indelible mark
on our collective memory. India surpassed China to become the world's most populous
country, positioning India favourably and solidifying its trajectory towards becoming one
of the foremost economies worldwide.
Tempered by a multitude of persistent challenges, such as the socio-economic
ramifications of post-pandemic recovery and fluctuations in commodity prices, geopolitical
tensions continued to simmer in various regions.
The climate conundrum pursued its relentless march, demanding urgent action.
In contrast, India exhibited resilience, seamlessly blending elements of robust
economic growth and a dynamic consumption landscape. The Goldman Sachs Research Global
Outlook ranked India among the top 13 major economies, granting us a unique
opportunity to shape a promising future. It was a year of reflections, enabling us to
script the framework for the road ahead.
Growing together - today and tomorrow
Amidst a challenging external landscape, your Company remained committed to its growth
path, guided by its heartbeat, encapsulated in the 5 P's - Purpose, People, Partnerships,
Planet and Performance.
With a steadfast adherence to 'Make in India' your Company announced its tenth factory
in Odisha, reaffirming the significance of India as a market. Strengthening this further,
your Company is poised to invest approximately H 7,500 crore between 2020 and 2025 to
develop new capabilities and expand existing ones with a sharp focus on sustained growth
and innovation.
Your Company was listed on the National Stock Exchange and recently split its shares in
a 1:10 ratio to make them more affordable to shareholders.
This move has been positively received by the retail shareholders, giving them an
opportunity to be a part of the Company's value creation journey.
Balancing growth and profitability consistently
The underlying fundamentals of your Company continue to be strong. Robust growth was
sustained across all categories, with India becoming the largest Nestle market globally
for MAGGI and the second-largest market for KITKAT. Your Company's total sales witnessed
doubledigit growth as we navigated a dynamic market landscape.
The Out-of-Home business continued to accelerate rapidly and became one of the fastest-
growing business of your Company in India. E-commerce sustained its upward trajectory,
contributing 6.8% of sales. All key brands and product groups recorded consistent growth,
despite escalating food inflation and volatile commodity prices, primarily in coffee and
cocoa.
Nestle's legacy in India
Sales contributed by e-commerce
By combining the power of its brands, meticulous planning, astute implementation and
outstanding execution, by a diverse team of employees, partners, suppliers, distributors
and retailers, your Company delivered 'Performance with Pride'.
Investing in innovation as an engine for growth
Innovation is a core strength of your Company. This underscores its commitment to
introduce new and exciting offerings tailored to the evolving consumer needs.
Over the past eight years, your Company recalibrated, redirected and rejuvenated its
product portfolio, by launching over 140 new products. A significant portion of sales in
2023 was attributed to innovative products. This includes science-led nutrition solutions,
millet-based products and plant-based protein options that cater to diverse dietary needs.
The market for plant-based products presents a significant opportunity for your
Company.
It offers relevant India-centric products that seamlessly integrate and resonate with
the Indian palate, providing enhanced culinary experiences and nutritionally improved
choices. 2023 was the International Year of Millets. Your Company launched a slew of
millet-based products and was conferred with the 'Best Industry - Product Innovation
for Mainstreaming Millets Award'. A nation-wide campaign on millet awareness was
rolled out across print, out- of-home and digital platforms.
Amongst others, MAGGI Korean noodles was also launched, catering to the diverse
consumer preferences.
Embracing the power of analytics and digitalization
Your Company continued its journey to embrace digital and analytics. There are
different facets to analytics, including direct-to-consumer (D2C) sales, automation,
e-commerce and consumer insights. The initiative is to integrate and enhance the power of
data, analytics, digital, commercial decision-making and the power of outcomes with the
integration of Multi-Intelligence Data Analytics System (MIDAS) into business, for smarter
decision-making.
Expanding and accelerating RUrban thrust
Your Company remained steadfast on its RUrban journey by creating infrastructure,
portfolio, feet on the ground and opportunities for penetrating new geographies. This
resulted in a notable upswing in sales and expanded our direct coverage footprint,
crossing the milestone of over 200,000 villages.
Focusing on people, diversity, talent and generational shift
Fostering a positive organizational culture is vital for achieving excellent outcomes.
A sense of belonging, where employees are fully seen and heard, necessitates a blend of
empowerment, respect and dignity, which is intrinsic in bolstering diversity and
articulating aspirations and ambitions of a heterogenous team.
Women are growing steadily in leadership in your Company and are part of succession
plans.
Their development plans are closely tracked and supported across all business units,
factories, and branches in a quest for a more diverse, inclusive and equitable future.
Inclusivity has extended to hiring differently abled individuals, with initiatives in
Sanand and our Nestle Business Services.
A diversified team encompasses vibrant streams of thought, fuels innovation and
creativity. From the most remote corners of the country, to the youngest Gen Z employee,
to people with different skills, have all collaborated to create a symphony of unison in
bringing to the fore, 'Purpose and Values' in action.
Enabling strong impact on communities
Strengthening its commitment to 'Being a Force for Good', your Company has touched the
lives of approximately 14 million beneficiaries through societal interventions, in the
areas of rural development, education, nutrition awareness, water and sanitation,
environment and livelihood.
Your Company celebrated five years of Project Hilldaari towards developing resilient
models for waste management across seven tourist destinations, diverting waste from
landfills, professionalizing waste workers, digitalizing systems to streamline waste
management and inspiring behavioural change.
Strengthening the sustainability journey
Your Company has made strong strides in environmental sustainability by following a
clear roadmap to address climate concerns across its value chain, increasing investments
and regularly assessing the progress of environmental goals. Our eight factories are now
entirely coal-free. The pace of installing anaerobic biodigesters in dairy farms has been
accelerated to reduce methane emissions and provide renewable energy to farming
households.
Carving our path to progress
As the road before us unfolds, and we chart out our path to progress, we continue to
commit to holistic and responsible business practices by aligning corporate goals with
societal and environmental concerns, creating a shared value and making sure that business
is a 'Force for Good'.
Ours is a story not of swashbuckling success, but of disciplined interventions, of
doing the right thing, of making meaningful contributions and of showing our mettle as we
navigate transient clouds. It is a story of integrity, dedication, and diligence that
nourishes the roots and translates into positive impact.
In all our efforts the role of visible leadership starting with our Board of Directors
is apparent. Leadership changes are a part of our journey and I would like to welcome Ms.
Suneeta Reddy and Mr. Sidharth Kumar Birla as Independent Non-Executive Directors of the
Company and thank the outgoing Directors,
Dr. Swati A. Piramal and Mr. R.V. Kanoria for their immense contributions as our long
serving Board members.
I would like to thank our employees, partners, suppliers, distributors and retailers
for their unwavering faith, wholehearted support and for being the wind beneath our wings.
I conclude by extending our gratitude to our shareholders, for their continued trust and
confidence in the strategy, direction, results and resolve of the Company.
Suresh Narayanan
Chairman and Managing Director