Nestlé India is placing its future growth bets on rural and semi-urban markets, where rising aspirations and evolving consumption patterns are expected to drive the next phase of demand, according to Chairman and Managing Director Manish Tiwary.
Speaking at the company’s 67th Annual General Meeting, Tiwary said India represents a market of immense opportunity, with consumption growth increasingly shaped by deeper household penetration, expanded distribution networks and stronger consumer engagement across regions.
He noted that India is not a single market but a collection of diverse consumer segments differentiated by income, geography, language, aspirations and preferences. The company, he said, remains focused on customer-centric strategies tailored to these varied needs.
Highlighting macroeconomic challenges, Tiwary said FY26 was a difficult year for the consumption sector, with food inflation influencing household spending patterns. Consumers adjusted buying behaviour, including pack sizes and purchase frequency, while rural demand remained dependent on monsoon conditions and farm incomes. Urban demand, although relatively stable, varied across income groups.
Despite these pressures, Nestlé India reported strong performance, with its highest-ever domestic sales of ₹23,071.5 crore, supported by double-digit volume growth and market share gains. The company also added that more Indian households purchased its products than ever before.
Tiwary emphasised that sustainable growth will come from expanding penetration across households rather than relying solely on pricing or premiumisation. Nestlé has added about 5.2 lakh retail outlets since April 2023 and is investing heavily in Tier-II and Tier-III towns, capacity expansion and distribution strengthening.
The company has committed around ₹2,000 crore in capital expenditure over the past two years to support its long-term growth strategy.
