Nestlé India, a leading fast-moving consumer goods (FMCG) company, has announced a major expansion in its confectionery production. The company is investing Rs 1,100 crore to set up a new KitKat production line at its Sanand factory in Gujarat.
Increased Production Capacity for KitKat
The new investment will boost Nestlé India’s annual production capacity by 15,000 tonnes once the facility is operational. The project is expected to be completed within the 2024-25 financial year.
Nestlé India’s Sanand factory is already a key manufacturing hub, and the new KitKat production line will help meet the rising demand for chocolate wafers in the country. The company aims to make its supply chain more efficient and support its growth strategy.
Investment Funded Through Internal Accruals
Nestlé India has confirmed that the Rs 1,100 crore investment will come from its internal funds. The company continues to prioritize expansion while ensuring financial stability.
This strategic investment is part of Nestlé India’s long-term plan to increase its presence in the Indian confectionery market.
Part of a Larger Capital Expansion Plan
Nestlé India’s new KitKat production line is part of a bigger capital expenditure plan worth Rs 5,800 crore. This plan covers the period between 2020 and 2025 and includes:
- Greenfield projects (new factories and facilities).
- Brownfield projects (expanding existing production units).
Nestlé India already manufactures KitKat at its Ponda factory in Goa, and the additional capacity in Sanand, Gujarat, will help meet growing consumer demand.
Nestlé India’s Financial Performance
Nestlé India continues to show strong financial growth. For the December 2023 quarter, the company reported:
- Net profit of Rs 688.01 crore, compared to Rs 655.61 crore in the previous year.
- Total product sales of Rs 4,762.13 crore, up from Rs 4,583.63 crore a year earlier.
- Total expenses increased by 6.18%, reaching Rs 3,861.91 crore.
- Domestic sales rose by 3.23%, reaching Rs 4,566.05 crore compared to Rs 4,421.79 crore in the same period last year.
These numbers reflect consistent revenue growth and rising demand for Nestlé India’s products.
Why Nestlé India is Expanding KitKat Production
The chocolate wafer market in India has grown significantly, and KitKat remains one of the most popular choices among consumers. Nestlé India aims to:
- Meet growing consumer demand for affordable chocolate products.
- Expand manufacturing capacity to improve supply chain efficiency.
- Strengthen its market position in the Indian chocolate industry.
By expanding production, Nestlé India can reduce supply shortages and ensure that KitKat remains widely available across the country.
Future Plans for Nestlé India
The company continues to focus on sustainable growth and investments in manufacturing. Nestlé India’s commitment to expanding local production ensures that it can:
- Support job creation in Gujarat and other regions.
- Enhance production efficiency through advanced technology.
- Deliver high-quality chocolate products to Indian consumers.
With the new KitKat production line in Sanand, Nestlé India is taking another step toward long-term market expansion.
Nestlé India’s Rs 1,100 crore investment in a new KitKat production line at Sanand, Gujarat, is a significant move in the Indian confectionery industry. The expansion will increase production, create jobs, and strengthen the company’s supply chain.
With a growing demand for chocolate wafers, Nestlé India is ensuring that KitKat remains a favorite among consumers across the country.
