Suresh Narayanan, Chairman & MD – “5Ps – PURPOSE, PLANET, PARTNERSHIPS, PEOPLE, and PERFORMANCE will form the cornerstone of successful organizations.”

NESTERNSHIP – Upskilling Youngsters (1,000 Virtual Interns Joined, Half From Non-tier 1 Cities, 2/3rd Female Interns)

10 Year Financial Highlights

Exports

  • In 2020, exports registered 4.8% volume growth, driven by categories such as Prepared Dishes and Cooking Aids, Milk Products, and Nutrition
  • Continued focus on MAGGI range extension and channel proliferation brought growth across international markets.
  • Recorded highest ever exports of MAGGI noodles and sauces to the USA, Canada, United Kingdom, European Union, Australia, and New Zealand, despite disruptions in the supply chain, caused as a result of COVID-19.
  • Categories such as Coffee and Beverages were negatively impacted by supply chain disruptions, lower coffee exports to Turkey, and drop-in Out-of-Home consumption.
  • They continue to explore new markets for categories such as Prepared Dishes and Cooking Aids, Chocolates and Confectionery in the Middle East

Products

  • NESCAFÉ, KITKAT, EVERYDAY, MAGGI noodles, MASALA-Ae-MAGIC outperformed and continued to be significant growth drivers
  • Delivered strong performance in the e-commerce channel, due to rise in in-home consumption
  • MAGGI Sauces registered double-digit growth
  • MAGGI Upma and Poha scaled up in volume and delivered a strong presence in the Ready-to-Eat segment.
  • The Milk Product and Nutrition business continued to deliver good performance
  • Chocolates and Confectionery business clocked strong growth and market share gains (launched multiple ‘category first’ innovations across key brands, such as Nestlé POLO Extra Strong and Nestlé POLO Paan)
  • Continued to focus on growing Coffee and Beverages business and remain relevant to consumers which reflected in strong brand growth and resulted in significant market share gains.
  • Demand for MAGGI Noodles, Sauces and Pasta, Nestlé A+ UHT Milk, NESCAFÉ and NESCAFÉ SUNRISE (Coffees), MILKMAID condensed milk increased as consumers stocked products due to uncertainty and increase in in-home consumption as well as in-home cooking.

Capex

Proposing to invest Rs 2600 CR over the next three to four years to augment its existing manufacturing capacities, as well as towards its new under construction ‘state of the art’ factory in Sanand, Gujarat

Launches

  • Launched MAGGI Atta Spinach noodles
  • KOKO KRUNCH, a global cereal brand in 2020
  • NESPLUS was renovated with new packaging.
  • Introduction of smaller 200g SKUs of RESOURCE HIGH PROTEIN and RESOURCE DIABETIC in key channels
  • NESCAFÉ accelerated its premiumization journey, building on the promise of delivering coffee at its best with NESCAFÉ Gold

Channel / Trade Insights

  • Stepped-up efforts to make products available in residential societies so that consumers can avoid stepping out during the pandemic.
  • Activated emerging platforms and newer Route to Market (RTM) by partnering with hyperlocal delivery platforms within a month after a lockdown in a few cities for the first time.

Management Discussion & Analysis (MDA)

  • Consumers started experimenting with convenience leading to a shift in preferences for easy-to-prepare meals.
  • Being confined to homes, balancing work and household chores, has led to an increase in the demand for food and beverage options, cooking aids, and recipe solutions
  • The company launched more than 80 new products in the last 5 years out of which 10 new products were launched in 2020.
  • Consumers began focusing on total well-being and holistic health.
  • Increasing the reach in rural markets by putting a sharper focus on increasing mind share and market share will be important. Through the cluster-based approach, which is powered by data and technology, they have made deeper penetration into newer markets, unleashed growth potential, and created a transparent planning process.
  • The company focused on the acceleration of projects pertaining to the localization of ingredients that were being imported, by providing continuous knowledge transfer to its partners through a team of in-house experts.

Digitalization and automation

Even Before COVID 19,  Farmers used to receive E-slips showing results of Fat and Solid Not Fat (SNF), on their mobiles and online payment systems on a regular basis. This has brought speed and reduced turnaround time through online information sharing. This initiative has put milk collection centers of Punjab and Haryana on a digital platform. During COVID-19, your Company accelerated the invoicing platform and adopted paperless invoicing. Nearly 40% of your Company’s invoices are managed digitally now.

Moreover, introducing automation and digitalization across its supply chain from order and collection processes to centralized logistics has enhanced efficiency in processes and speed to market. It has improved the transparency of information to suppliers, farmers, customers, and consumers.

In order to ensure a sustainable future, across the value chain, your Company focused on reduction in wastage, through alternative modes of transportation such as railways and waterways.

More Annual report takeaways here. Our complete media coverage here.

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