 "A different challenge, but I'm not perturbed: Suresh Narayanan")
In a span of four months, 55-year-old Suresh Narayanan has moved from being the chairman and chief executive officer of Nestlé Phillipines to taking charge as managing director of Nestlé India. Following the transition, he is presiding over the affairs of a company that is going through its roughest patch so far. In an interview with Arnab Dutta and a few other journalists, Narayanan, considered a consumer goods specialist, highlights his priorities for India’s largest food company by revenue. Edited excerpts:
Nestlé’s global management has turned to you in its hour of distress. How do you propose to get Nestlé India back on the growth path, given in the June quarter, it posted its first quarterly loss in 17 years?
My first task is to rebuild confidence in the brands we own and market, both at the consumer and employee levels. Without a doubt, the current (Maggi) mess is a blow to us. My priority would be to build the company block by block.
What are the measures you would take to achieve that? Are job cuts imminent, given your biggest brand, Maggi, is off the shelves?
We are not laying off any permanent employees. But as far as the present situation goes, we have people working in factories, redeployed to other activities.
Most analysts and stakeholders tracking Nestlé India were well aware of its dependence on Maggi. Following the crisis, do you propose to have a road map to reduce your dependence on that brand?
It is a fact that today, Maggi is a big part of our portfolio. But our focus would be on growing some of our other categories as well, such as dairy, coffee, chocolates & confectionery. I believe there are opportunities for growth in these areas. And, all this is part of the agenda I have placed before myself and the organisation. Yes, the journey on Maggi will continue, but other categories will also be significantly emphasised.
With you coming on board, will there be an increase in marketing expenditure? Nestlé’s current problems have distracted it from core brand-building, a must for a fast-moving consumer goods company.
Yes, there have been some challenges there. But let me tell you there is considerable effort going into marketing. And, I can tell you an increase in spends will be across categories, which will be put in place in the coming months.
As the Maggi crisis broke out in India, did you expect getting a call from the global management to take charge of operations here? Company insiders say it was imminent, as internally, you have been described as Nestlé’s go-to man.
I see this as a regular transition process. The management saw in me the skill sets needed to handle the current situation. So, here I am. Yes, being an Indian helped; the culture and language is not alien to me. I won’t deny that this is a different kind of challenge for me. But I am not perturbed.
Nestlé’s global management has turned to you in its hour of distress. How do you propose to get Nestlé India back on the growth path, given in the June quarter, it posted its first quarterly loss in 17 years?
Read more from our special coverage on "NESTLE MAGGI CONTROVERSY"
- Bihar bans 11 noodle brands; ITC, HUL and Glaxo among them
- Nestle India denies reports of Bombay HC asking for Maggi noodles retest
- Nestle agrees to HCs proposal on fresh testing of Maggi
- Maggi case: Nestle violated laws, alleges Maharashtra FDA
- Post Maggi episode UP FDA upgrading lab testing facilities
My first task is to rebuild confidence in the brands we own and market, both at the consumer and employee levels. Without a doubt, the current (Maggi) mess is a blow to us. My priority would be to build the company block by block.
What are the measures you would take to achieve that? Are job cuts imminent, given your biggest brand, Maggi, is off the shelves?
We are not laying off any permanent employees. But as far as the present situation goes, we have people working in factories, redeployed to other activities.
Most analysts and stakeholders tracking Nestlé India were well aware of its dependence on Maggi. Following the crisis, do you propose to have a road map to reduce your dependence on that brand?
It is a fact that today, Maggi is a big part of our portfolio. But our focus would be on growing some of our other categories as well, such as dairy, coffee, chocolates & confectionery. I believe there are opportunities for growth in these areas. And, all this is part of the agenda I have placed before myself and the organisation. Yes, the journey on Maggi will continue, but other categories will also be significantly emphasised.
With you coming on board, will there be an increase in marketing expenditure? Nestlé’s current problems have distracted it from core brand-building, a must for a fast-moving consumer goods company.
Yes, there have been some challenges there. But let me tell you there is considerable effort going into marketing. And, I can tell you an increase in spends will be across categories, which will be put in place in the coming months.
As the Maggi crisis broke out in India, did you expect getting a call from the global management to take charge of operations here? Company insiders say it was imminent, as internally, you have been described as Nestlé’s go-to man.
I see this as a regular transition process. The management saw in me the skill sets needed to handle the current situation. So, here I am. Yes, being an Indian helped; the culture and language is not alien to me. I won’t deny that this is a different kind of challenge for me. But I am not perturbed.