Quick commerce is emerging as a key distribution channel for Nestlé India, enabling the company to expand the reach of its premium products beyond metropolitan markets, Chairman and Managing Director Manish Tiwary said at the company's Annual General Meeting (AGM). The fast-moving consumer goods (FMCG) maker also said it is strengthening its focus on healthier products, digital capabilities and rural expansion as it looks to sustain long-term growth.
"Our omni-channel approach ensures that our brands are available across the locations and channels most convenient to our consumers. Premiumisation continues to grow in urban markets and larger towns, supported by sharper availability and strategic partnerships with key e-commerce platforms and quick commerce," Tiwary said while outlining the company's growth strategy.
The comments come as quick commerce continues to reshape India's retail landscape, allowing consumer goods companies to widen distribution, particularly for premium products that traditionally had stronger visibility in larger cities.
Nestlé India's FY26 Annual Report reflects this shift, with online channels registering 97 per cent growth during the year and contributing meaningfully to the company's overall business performance. The company said it will continue to strengthen its omnichannel strategy across traditional retail, modern trade, ecommerce and quick commerce platforms.
Healthier Products In Focus
Alongside expanding its digital presence, Nestlé India is accelerating efforts to improve the nutritional profile of its products in response to changing consumer preferences.
"Across our portfolio we continue to improve nutritional profiles where relevant, reducing added sugar, salt and saturated fat, adding positive ingredients and offering appropriate portion sizes. Any reformulation must be science-led, compliant with regulations and, very importantly, accepted by consumers," he said.
The company said it continues to reformulate products by reducing added sugar, salt and saturated fat where appropriate while introducing ingredients that enhance nutritional value. It added that product innovation is backed by the Nestlé Group's global research and development capabilities, with formulations adapted to Indian tastes and preferences.
During FY26, Nestlé India rolled out Cerelac with no refined sugar across the country and upgraded its NAN infant nutrition portfolio. The company also said its AskNestle nutrition platform has recorded more than 92 million visits since its launch in 2019, generated over 717,000 personalised meal plans and facilitated more than 10.7 million access sessions to expert nutrition articles.
Household Penetration Over Pricing
Despite continued inflation in key commodities, Nestlé India said expanding its consumer base remains a bigger priority than relying on price increases. Since April 2023, the company has added around 520,000 retail outlets, taking its products deeper into urban, semi-urban and rural markets.
"The opportunity ahead is to earn the trust of the India that is just beginning to find us," he said.
Tiwary said India's diverse consumer base requires differentiated products, price points and distribution strategies suited to varying income levels, tastes and aspirations.
Management said strategic sourcing, productivity improvements and operational efficiencies would remain the company's first line of defence against commodity inflation, with pricing considered only after these measures have been exhausted.
Rural Markets And Technology
While digital commerce is growing rapidly, Nestlé India said rural markets will continue to be its biggest long-term growth opportunity.
According to Tiwary, rising aspirations across Tier-II, Tier-III and rural India are shaping the country's next phase of consumption growth. The company plans to deepen its presence in these markets through wider distribution and tailored product offerings.
Nestlé India is also increasing investments in digital technologies across sales, manufacturing and supply chains. These include touchless demand forecasting, automated replenishment systems, forecasting algorithms and manufacturing optimisation aimed at improving efficiency, agility and product availability.
India Leads Global Markets
Highlighting India's growing importance within the Nestlé Group, Tiwary said the country is now the company's largest market globally for both Maggi and KitKat.
“Maggi continues to hold a special place in Indian homes, and India remains its largest market globally.This year India also became the largest market for KitKat globally. Let that land for a moment. The world's most iconic chocolate bar now finds its biggest audience here in India,” Tiwary said.
Tiwary said the milestone reflects both the company's execution capabilities and the strength of its relationship with Indian consumers.
Responding to shareholder questions, he said the nutrition business recorded sequential improvement through FY26 despite external challenges. He attributed the recovery to market share gains in the second half of the financial year, the upgraded NAN infant nutrition portfolio and the nationwide rollout of Cerelac without refined sugar.
Nestlé India also acknowledged continued volatility in coffee, cocoa, energy and freight costs. However, the company said it will continue to protect margins through strategic procurement, productivity initiatives, digital planning tools and supply-chain optimisation, with price increases remaining the final lever if cost pressures persist. |
