Nestle India says its Taste bhi health bhi tag line also sums up their growth strategy. It has planned to bring some of its international nutrition brands to India. Chairman and Managing Director Antonio Helio Waszyk tells Business Standard he wants India to be in the top 10 countries for Nestle worldwide very soon. Edited excerpts:
What is Nestle’s India-specific strategy? What is going to drive your growth in India?
Health care is an important area for us. We are going to target nutrition deficiency. Specific to India, we have noticed deficiency on one side and lack of discipline in eating habits on the other. We will make sure we deliver products nutritiously superior to our competitors. We are going to expand our product portfolio and customise our offering to be relevant. Problems like obesity, diabetes are on a rise in India.
These problems are mostly urban ailments. How important is the rural segment?
In the first six months I spent here, I had given a clear target to the sales people for increasing penetration in rural India. It is the rural sector which is driving FMCG (fast moving consumer goods) growth. In keeping with that, we launched the Rs 2 Munch, Rasile Chow, 12 Grams Everyday, Magic Masala, for Rs 2.
The rural market is growing faster than the urban. Our effort is to bring an affordable source of iodine, iron and vitamins to the consumers. We want to grow across sectors.
Are you worried about the increasing cost of commodities?
Consumers and companies, both are under pressure. It is a challenge. We are taking steps to optimise our costs. We have a ‘lean’ mindset. We try to eliminate waste in the entire chain. We have a good procurement team. We are applying new technologies that increase our throughput by 35 per cent. When I grow, I absorb the cost.
Where does India figure in the global list of the Nestle group?
Nestle India is one of the main sources of growth for our global group. India is 12th or 13th in the global list. Our target is to get it in the top 10 very soon. Presently, it is just 1.1 per cent of total revenue. We have to increase this share. To reach five per cent share will take at least a decade. But, I want to say that I am not here for just one more quarter, I am going to be here till 2025. The idea is to grow. Think big and act bigger, as the finance minister of India said. We are on the right track. We are leaders in nutrition science. And, we want Nestle India to be recognised for that.
How are you planning to compete with the Cadbury-Kraft combination in India?
We will diversify; build on Munch. It is a brand, India’s identification with chocolate. We have a tremendous strategy, built on four consumer classifications. You will hear about it soon.
Are you setting up new manufacturing units?
We are going to expand capacity. It is early to point out exactly how much and where are we going to expand at this stage. But, two units should come up by next year.