Bharat is discovering Nestle brands, there is secular growth: Suresh Narayanan

economictimes.indiatimes.com:

Suresh Narayanan, Chairman & MD, Nestle India, in conversation with Nikunj Dalmia of ET Now. Narayanan says, “Bharat is discovering the brands of Nestle. So earlier, as you would recall, we were largely a metro and a mega city company.

Today, we are into the lower town classes, TC1s, TC2 to 6, and rural India and enjoy about 20% of sales coming out of these rural markets. In the last eight to ten quarters continuously, we have enjoyed double-digit growth across all these geographies. So, Bharat is discovering the Nestle brands, there is secular growth.” The Nestle India boss further says that “the time of Nestle has just come.

When I go to a Banaras or when I go to a Gopigang and the retailer says, log KitKat, naam se maante hain, log, Nescafe, naam se maante hain, (people ask for Kitkat, Nescafe by name) that gives me hope for the future. That was not true five years ago or even 10 years ago. Today, that is happening.”First let us understand the big picture from an industry standpoint, for the food segment and then we will get into specifics of Nestle.Let me just outline briefly the track record of the company.

If you take the last 26 quarters of Nestle India performance, 21 out of the 26 quarters have been quarters of double-digit growth. If you look at in terms of the net profits, almost 15 out of the 26 quarters that we are talking of are quarters of double-digit profit growth. If you look at the return on equity of the company, it is 100%.