Nestle India bottom line vaults 30% in 2003

FMCG major Nestlé India reported a top line growth of 11.4 per cent for the year ending December 31, 2003, compared with Rs 2,279.8 crore in the previous year.

The company's net profit soared 30 per cent to Rs 263 crore, compared with Rs 202.3 crore in the previous year.

According to Nestle, the thrust on lower price points and improved affordability and availability of its products has helped in achieving the double-digit growth despite uncertain and difficult market conditions last year. Domestic sales increased 11.7 per cent, while exports grew 8.9 per cent.

"Our ability to anticipate emerging needs and provide high quality products that add value to the consumer was the key for Nestle's consistent top line and bottomline growth," said Carlo Donati, chairman and managing director, Nestle India, in a statement.

Though good monsoons in most part of the country and revival in manufacturing activity improved the sentiment in the second half of the year, the impact on consumer spending in the FMCG segment was limited.

The increase in exports was due to the increase in per unit realisations thanks to higher green coffee prices in 2003. Nestlé remained the highest coffee and value added instant coffee exported from India.

According to the company, its efforts to target the needs of ethnic Indian population living abroad has helped in higher coffee exports.

Export of instant tea also showed healthy growth. Commenting on the Nestle's operational efficiency, Donati said, "more efficient demand forecasting, supply chain management and improved penetration helped to sustain growth.