The largest food company, Nestle India eyes on rural market to cover 1.2 lakh village
By Sanjay Kumar
In 1947, the economic policies of the government of India mainly focus on importing and selling, Nestle India has been playing an important role in country growth for over a century now, and already built a trustful relationship with Indians. The Company’s open doors of employment provide a livelihood to about 1 million people cover farmers, suppliers of packaging materials, services, and other goods.
Nestle India: invest big in the rural market, aims to grow its business
Quick Facts
- In the last 5-years, Nestle rural sales have gone up by 10 per cent.
- Nestle India plans to reach 1.2 lakh villages with each having a 5 thousand population.
- Nestle currently has 1.5% of sales from e-commerce channels.
- The rural reach of Nestle India in 2019 covers 89,000 villages.
The last 3 years show Nestle becoming a challenge for other brands in terms of growth. Nestle India aims to grow its rural business in the coming years more speedily. It follows January-December as a financial year, recorded a revenue of INR 11,292 crore in 2018. In the Rural Market, Nestle has a direct distribution and wholesaling distribution channel.
Narayanan (Chairman & Managing Director at Nestle India Ltd) said: “The rural sales contribution is 25% of total sales and it will be great if, in the coming years, it goes to above 30%. Last 5 years, Nestle rural sales have gone up by 10 per cent. Nestle India rural reach covered 1000 odd village in 2017 but in 2019 it reached 89,000 villages”.
Nestle plans to reach 1.2 lakh villages with each having a more than 5 thousand population in the next 3 years, this will be done, not only through distribution expansion but relevant parts of the portfolio tweaking,
“Aspiring country at tier-II & III is what we need to watch out for in the future and it is that which is getting excited for us,” he said.
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