Nestle India

Adds quote from filing, context paragraph 2, 4, 9

By Aditya Kalra

NEW DELHI, Aug 28 (Reuters) - India's food regulator has proposed front-of-pack warning labels on packaged food and drinks, reversing its position following growing public anger about a lack of strict labels that highlighted high sugar, fat or salt in items.

The move is a major setback for food companies in India's over $100 billion market where Coca-Cola and industry groups representing Nestle and PepsiCo have long opposed such labels, saying they are confusing. Activists and the Supreme Court have long called for them, citing problems like obesity.

The Food Safety and Standards Authority of India has proposed a red-coloured hexagonal shape for food products which are high in any two or more nutrients - fat, sugar or salt - it said in a Supreme Court filing, seen by Reuters.

"The warning label shall indicate the applicable declaration, such as 'HIGH FAT', 'HIGH SUGAR', 'HIGH SALT' and/or 'HIGHLY SWEETENED BEVERAGE' ... to enable consumers to readily identify products high in the specified nutrients," FSSAI said in the filing on Friday.

The mechanism will "facilitate informed food choices, particularly in relation to children and other vulnerable groups of the population," it added.

Reuters is first to report the court filing, which has not been made public. The submission was made in the Supreme Court as it was hearing challenges from health activists calling for long-delayed warning labels, and had told the government earlier this month to act fast.

Prime Minister Narendra Modi's government has for years tried to implement some form of warning labels, but dropped a proposal this year after companies privately opposed the measures, Reuters reported this week.

Since the story was ​published, consumers and health experts in India have expressed their anger on social media, as companies like ⁠Coca-Cola and Nestle have voluntarily put similar labels in many European markets for years.

"We are considering the government proposal and our experts are going to review it," said Rajiv Shankar Dvivedi, the lead counsel for non-profit "3S And Our Health" which had challenged the government in the Supreme Court for lack of warning labels.

(Reporting by Aditya Kalra and Aditi Shah; Editing by Susan Fenton, Louise Heavens, Alexandra Hudson)

(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

By Aditya Kalra and Richa Naidu

NEW DELHI, Aug 27 (Reuters) - Nestle NESN.S wants India to consult with companies when drafting rules for front-of-pack health labelling on food and drinks to ensure it is done "scientifically," its chief executive said, amid a public debate on the lack of such measures in the country.

Prime Minister Narendra Modi's government has for years tried to implement some form of warning labels on packaging, but dropped a proposal after companies like Coca-Cola KO.N and industry groups representing the likes of Nestle in March opposed the measures, Reuters reported earlier this week.

Since the story was published, consumers and health experts in India have expressed their anger on social media. Companies like Coca-Cola and Nestle have voluntarily put similar labels on their products in many European markets for years.

Nestle CEO Philipp Navratil told India's Economic Times newspaper that while the company supports front-of-pack labelling for products with high sugar, salt and fat, manufacturers should be consulted in the process.

"It's always good to have a voice from companies; there might be different views (on the subject)," Navratil said in the interview, published on Thursday. "We can be part of the debate in terms of making sure it's scientifically done."

India's Supreme Court, after hearing the pleas of health activists, slammed New Delhi for delays and called for implementing front-facing warning labels.

Food safety regulator FSSAI did not respond to Reuters queries on the matter.

CONSUMER ANGER

Nearly 80% of products made by India’s more than $100 billion packaged food and beverages market could be regarded as high in fat, sugar and salt, according to industry estimates.

Activists say companies should not be consulted in deciding on labelling.

"Nestle's call for industry participation in India’s labelling rules is a clear attempt to weaken public health policy," said Dr. Arun Gupta, the convenor of Nutrition Advocacy in Public Interest, a national think tank on nutrition. "They have used warning labels in Europe since 2013 while their trade bodies fought them in India."

Nestle did not respond to Reuters requests for further comments.

There has been a wave of stricter enforcement recently in India on food safety issues, with a maverick officer in Mumbai achieving celebrity status for raiding and suspending many eateries' licenses.

The Reuters story this week also revealed that companies make different versions of the same products to comply with local regulations, tastes and spending capacity.

"Why Global Brands Take Indian Users Lightly? This is Terrible," Ravisutanjani Kumar, an Indian entrepreneur, wrote on X.

A can of Fanta sold in London has 63 calories, but the same-sized product in India contains three times as much sugar and 185 calories.

"They are right when they say it would cost more to use healthier ingredients," said Vir Sanghvi, one of India's best-known food writers, in a column on Thursday. "The prices of their products would go up ... but is that such a bad thing?"

"For the multinationals and their profits, perhaps. But for the health of our nation? I doubt it very much."

(Reporting by Aditya Kalra; Editing by Thomas Derpinghaus)

((Email: [email protected]; X: @adityakalra;))

Aug 26 (Reuters) - Nestle India Ltd NEST.NS:

• GETS CUSTOMS ORDER FOR DEMAND OF DUTY OF 111.1 MILLION RUPEES

Source text: [ID:]

Further company coverage: NEST.NS

(([email protected];))

** Nestle India NEST.NS shares on track to gain 1.3% this week, ending a two-week losing streak

** Stock down 0.2% at 1,444.9 rupees, had hit an all-time high on Wednesday

** Co reports a 48% YoY rise in quarterly profit; revenue from ops up 25%

** Analysts at Citi Research say structural growth drivers remain intact and should support a healthy growth trajectory

** NEST trades at a forward 12-month PE of 63.68 vs industry median of 21.91

** 16 of 35 brokerages rate the stock "buy" or higher, 14 "hold" and 5 "sell"; their median PT is 1,585 rupees - LSEG-compiled data

** YTD, stock up 12.5% vs 8.9% fall in the Nifty 50 Index .NSEI

(Reporting by Abhinav Parmar in Bengaluru)

(([email protected];))

** Nestle India NEST.NS shares fall 2.5% to 1,456.3 rupees

** Quarterly profit rises 48% YoY; revenue from ops up 25%

BROKERAGES SPLIT ON SUSTAINABILITY OF GROWTH

** Emkay Global ("reduce," PT: 1,350 rupees) expects margin to be under pressure in 2Q on higher input costs, and growth to moderate in 2H on high base

** Citi Research ("buy," PT: 1,750 rupees) says structural growth drivers remain intact and should support a healthy growth trajectory

** Jefferies ("hold," PT: 1,425 rupees) says the performance was broad-based across categories & channels. We believe the base effect also helped, and the growth rates should taper off from 2HFY27

** Phillip Capital ("buy," PT: 1,660 rupees) says even with some moderation in topline growth ahead, margin expansion on better mix, benign coffee prices and cost savings should continue to drive strong double-digit earnings growth over at least next couple of quarters

(Reporting by Abhinav Parmar in Bengaluru)

(([email protected];))

** Shares of Nestle India NEST.NS rise more than 3% to 1,499.30 rupees

** Indian unit of Swiss food major Nestle NESN.S posted 48% y/y rise in Q1 profit, helped by strong demand for its Maggi, KitKat and Nescafe brands

** Co's June-quarter revenue from operations rose 25% y/y

** 35 analysts have a "hold" rating on avg; median PT 1,461 rupees - data compiled by LSEG

** YTD, stock up about 16.5%

(Reporting by Surbhi Misra in Bengaluru)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

July 15 (Reuters) - Nestle India Ltd NEST.NS:

• NESTLE INDIA - RECEIVES RE-ASSESSMENT DEMAND ORDER FOR VAT, INTEREST, AND PENALTY

• NESTLE INDIA - GETS RE-ASSESSMENT TAX ORDER WITH VAT DEMAND OF 34.1 MILLION RUPEES

Source text: ID:nBSEzS8zj

Further company coverage: NEST.NS

(([email protected];))

July 3 (Reuters) - Nestle India Ltd NEST.NS:

• NESTLÉ INDIA DECLARES SPECIAL DIVIDEND 2026 OF 2 RUPEES PER SHARE

Source text: ID:nBSE3YwzpJ

Further company coverage: NEST.NS

(([email protected];))

June 12 (Reuters) - Nestle India NEST.NS on Friday rejected allegations regarding the presence of infestation in its MAGGI noodles.

(Reporting by Nishit Navin; Editing by Janane Venkatraman)

(([email protected];))

By Vibhuti Sharma

MUMBAI, June 4 (Reuters) - India's red-hot initial public offering market may look irresistible as foreign firms line up for listings, but the rush is not about raising funds to expand in a fast-growing market; it's about sending billions of dollars back to headquarters.

Just one of six foreign-based companies that listed their Indian units in Mumbai since 2024 raised new funds, with all others structured purely as secondary offerings - or offer for sale (OFS), where existing shareholders sell their holdings to the public without raising any new funds, according to data from Prime Database, an Indian market research firm.

Foreign-based parents of companies that have long invested in India pocketed nearly $5 billion through such secondary-offering IPOs, with Hyundai Motor 005380.KS and LG Electronics 066570.KS accounting for more than 80% of those payouts, the data showed. Simply put, for each dollar raised in these IPOs taken together, more than $59 went out.

And the trend is continuing: the planned $1 billion IPO of Walmart's WMT.O Indian payments arm and Modern Times Group's MTGb.ST $335 million IPO of its local gaming unit will both take the OFS route.

This week, Coca-Cola KO.N said the planned listing of its Indian bottler will have the American firm sell a portion of its stake. Banking sources said Carlsberg's CARLb.CO planned Indian IPO will also have no new funds raised - it will also be an OFS.

The trend, which bankers and economists say is a result of sky-high stock valuations in India in recent years, shows that the prospect of a lucrative partial exit from Indian investments has become more attractive to many foreign companies than raising new funds to expand.

Global companies are pursuing "India listings as this provides them liquidity as well as a positive impact on the market cap for their parent," said Prashant Gupta, a partner at law firm Shardul Amarchand, which advised both Hyundai and LG on their OFS-structured IPOs.

Modern Times declined to comment, while Carlsberg said it is "exploring different options for increasing shareholder value which may potentially include an" Indian IPO.

Walmart's Indian unit, PhonePe, Hyundai, LG and other companies did not respond to Reuters requests for comment.

RUPEE WOES

The OFS trend comes at a troubling time for the Indian rupee, which has fallen 13% against the U.S. dollar since 2024 and 6% so far this year. That has raised concerns that the IPO-linked repatriations are compounding already heavy foreign capital outflows.

In January, MUFG Bank wrote that its analysis "shows one important contributor to Indian rupee weakness has been the strong IPO market in India."

So far this year, foreign portfolio investors have sold more than $23 billion of their holdings, surpassing 2025's record outflows of $18.9 billion.

IPO-linked capital outflows are "exerting a steady, though not abrupt, depreciation bias on the rupee," said Tanay Dalal, a senior vice president of business and economics research at Axis Bank.

Government officials and regulators have not indicated that they would try to curb the OFS trend, though India's Chief Economic Advisor V Anantha Nageswaran warned in November that IPOs had "increasingly become exit vehicles for early investors rather than mechanisms for raising long-term capital."

"This undermines the spirit of public markets," he said. He did not respond to Reuters queries.

THE VALUATIONS GAME

India was the world's second-largest IPO market in 2025 after the U.S., with 367 listings raising $21.8 billion, according to LSEG data. Its markets surged to record highs over the last two years before starting to struggle this year due to uncertainties related to the U.S.-Israeli war on Iran.

Still, a record $26 billion worth of IPOs are awaiting approvals, according to regulatory data.

The appeal for using the OFS route is rooted in valuations.

Indian-listed units of foreign firms have consistently traded at multiples that dwarf their parents. Add to that a growing group of domestic investors that has resulted in high valuations in India over the past two years, making local listings attractive, lawyers and bankers said.

At least six foreign companies that listed their Indian units in recent years trade at a significant premium to their overseas parents, according to LSEG data.

Nestle India, which listed in 1969, has a price-to-earnings ratio - a measure of stock valuations relative to profit - of nearly 77 times, versus 22 times for Swiss parent Nestle NESN.S. LG Electronics India LGEL.NS, which listed last year, trades at nearly 59 times versus 44 times for its South Korean parent, LG Electronics 066570.KS.

On the day Hyundai 005380.KS listed its Indian unit in 2024, it was valued at about $18 billion, roughly 40% of its parent's market capitalisation.

"What's driving this is smart capital allocation - asset owners capitalizing on cross-market valuation arbitrage," said Abhishek Gang, a director at U.S.-based investment bank Houlihan Lokey.

Since 2024, the IPOs of the Indian units of Italian transmission systems maker Carraro CARD.NS, Norwegian consumer goods group Orkla ORKL.NS, and American auto parts maker Tenneco Clean Air TENN.NS all had OFS structures.

Only one - Britain-based Bupa's India unit, Niva Bupa Health Insurance NIVA.NS - structured its local IPO as a mix of fresh fundraising of $84 million and a larger $146 million OFS component.

"The final structure balanced the company's capital requirements with shareholder objectives, with the fresh capital supporting growth plans and the OFS providing partial liquidity to existing investors," Niva Bupa said in a statement to Reuters.

(Reporting by Vibhuti Sharma in Mumbai; Editing by Aditya Kalra and Thomas Derpinghaus)

(([email protected];))

** Nestle India's NEST.NS NSE-listed shares rise 24.75% in April, on course for biggest monthly uptick since at least 2010

** Gains follow co's strong Q4 results; profit up 26%, revenue rises 23% year-on-year

** Quarterly revenue of 67.48 billion rupees ($708.64 million) marks firm's highest domestic sales and strongest growth in nearly a decade

** ICICI Direct says rural expansion and e-commerce growth to boost penetration, supporting volume and revenue growth in the upcoming quarters; adds better mix and efficiencies to lift EBITDA margins by FY28

** Motilal Oswal says Nestle's brand investments, wider distribution and capacity expansion are cumulatively driving strong performance

** 15 of 36 brokerages rate the stock "buy" or higher, 14 "hold" and 7 "sell"; their median PT is 1,440 rupees

** YTD, stock up 11.7% vs 7.6% fall in the BSE Fast Moving Consumer Goods Index .BSESCGIP

($1 = 95.2250 Indian rupees)

(Reporting by Abhinav Parmar in Bengaluru)

(([email protected];))

** Shares of Nestle India NEST.NS jump 10.19% so far this week; on track for most weekly gains since October 2025

** Stock up 0.43% to 1,416.60 rupees on Friday, top gainer on Nifty 50 .NSEI, which is down 1.39%

** Co posted a 26% jump in Q4 profit, 23% rise in revenue on Tuesday, benefiting from strong demand for packaged foods, including KitKat chocolates and Maggi instant noodles

** Citi ("buy", PT 1,675 rupees) expects ~14% rev growth in FY27

** Says good results largely due to improved demand post consumption tax cuts

** BofA ("underperform", PT 1,320 rupees) says co's strategic priorities are in line with existing playbook

** Stock rated "hold" on average by 36 analysts, median PT at 1,425.50 rupees - LSEG data

** YTD, stock up 9.51% vs Nifty 50 down 8.65%

(Reporting by Surbhi Misra in Bengaluru)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

** Shares of consumer major Nestle's India unit NEST.NS rise as much as 3.2% to hit fresh record of 1423.90 rupees; last up 2.32%

** Co posted 26% rise in fourth-qtr profit y/y, 23% rise in qtrly rev y/y

** Shares of NEST had climbed 7.3% to record high on Tuesday after reporting quarterly results

** Citi ("buy", PT 1675 rupees) expects ~14% rev growth in FY27, says good results are due to improved demand post consumption tax cuts, among other reasons

** Jefferies ("hold", PT 1325) highlights that rev growth is highest in a decade

** BofA ("underperform", PT 1320 rupees) says co's strategic priorities are in line with existing playbook and unlikely to drive major growth

** NEST up 10.55% YTD

(Reporting by Abhirami G in Bengaluru)

(([email protected]))

April 21 (Reuters) - Nestle India NEST.NS posted a 26% increase in quarterly profit on Tuesday, benefiting from strong demand for packaged foods, including KitKat chocolates and Maggi instant noodles.

The Indian unit of Swiss food major Nestle NESN.S said net profit stood at 11.14 billion rupees ($119.12 million) for the fourth quarter ended March 31, compared to 8.85 billion rupees a year earlier.

($1 = 93.5188 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru and Praveen Paramasivam in Chennai; Editing by Harikrishnan Nair)

(([email protected]; +91 9558725583;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, April 10 (Reuters Breakingviews) - As India’s busiest beer season approaches, Carlsberg CARLb.CO is readying its taps. The Tuborg-maker is preparing a $700 million listing of its India arm in a market that offers room for growth at a time when the brewer is grappling with high debt and sluggish beer sales in the West. A premium valuation, possible in a country where wealthy drinkers are trading up, could help the brewer pay down its chunky deal-making tab.

Carlsberg has spent 20 years building its India business. The $18 billion brewer reckons its high-end Tuborg brand is the “most-consumed” in the world’s fourth-largest economy. It has also seen its share of the 639 billion rupees ($6.86 billion) beer market increase to 22% from just about 5% in 2011. But debt has been hanging over the brewer since its $4 billion acquisition of soft drinks maker Britvic in 2024. Since that deal, its net debt-to-EBITDA ratio roughly doubled to 3.25 in the year ended December 2025, well above its 2.5 target.

An India listing gives Carlsberg a shot at a richer valuation that can help bring down this debt. Carlsberg trades at about 13 times its expected earnings this year, trailing rival Anheuser-Busch InBev’s ABI.BR over 17 times. Heineken HEIN.AS-owned United Breweries UBBW.NS in India, by comparison, trades at 80 times. That valuation gap is not unique: Nestlé India NEST.NS at 73, Hindustan Unilever HLL.NS at 47 and LG Electronics India LGEL.NS at 54 trade at multiples higher than their parent companies.

Carlsberg can also use the proceeds from the listing to help fund its expansion plans in India. The growing beer market looks compelling as booze loses pull in ageing, health-conscious populations in Europe and North America. India's beer consumption is still very low - just 2 litres per person annually, according to market research firm IMARC Group. That's far below consumption levels in the U.S. and Europe, suggesting significant room for growth. Meanwhile, the market is expected to grow over 5% annually, compared to Europe’s 2% and North America’s 4%, amid a surge of demand from affluent Indians.

Still, India won’t be an easy win. The sector faces complex state regulations, high levies, and increasing competition from local beer makers and giants like United Breweries and AB InBev. United Breweries, India’s listed beer market leader, is also pushing further into the premium segment in a bid to restore its net profit margin which has halved since 2019. But a local listing will hand Carlsberg's CEO Jacob Aarup-Andersen a currency to strike deals in the country. And with a lighter debt load, he has a shot at growing beyond India too.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

Carlsberg CEO Jacob Aarup-Andersen on February 4 said that the company was exploring a potential listing of its India business.

Carlsberg has appointed three banks - Kotak Mahindra Capital Co. and the local units of JPMorgan Chase & Co and Citigroup - for the potential listing of its India arm, Bloomberg reported on February 23, citing people familiar with the matter. This offering could raise as much as $700 million.

A draft red herring prospectus could be filed as early as May.

(Editing by Aimee Donnellan; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

April 1 (Reuters) - Nestle India Ltd NEST.NS:

• NESTLE INDIA - NESTLÉ INDIA TO ADD NEW MAGGI NOODLES PRODUCTION LINE AT SANAND FACTORY

• NESTLE INDIA - INVESTMENT REQUIRED FOR NEW PRODUCTION LINE IS 900 MILLION RUPEES

• NESTLE INDIA - PROPOSED CAPACITY ADDITION OF 20,500 TONS PER ANNUM AT SANAND FACTORY

Source text: ID:nBSE6J6Bfm

Further company coverage: NEST.NS

(([email protected];))

March 19 (Reuters) - Nestle India Ltd NEST.NS:

• ADDITION OF A NEW MUNCH PRODUCTION LINE AT SANAND FACTORY, GUJARAT

• INVESTMENT REQUIRED 2.25 BILLION RUPEES

• PROPOSED CAPACITY ADDITION OF ABOUT 8,300 TONS PER ANNUM

Further company coverage: NEST.NS

(([email protected];;))

Adds nestle reaction in paragraph 6

PARIS, March 6 (Reuters) - A judicial inquiry launched in France after the death of a baby has shown no link with the recalled Nestle NESN.S infant formula he had consumed, the Bordeaux prosecutor said on Friday.

Cereulide, a toxin that can cause nausea and vomiting, was detected in ingredients from a supplier in China for several infant formula makers, triggering precautionary recalls in dozens of countries and raising concerns among parents.

"Based on the current state of the investigation, the infant's death does not appear to be linked to the formula used for feeding," the prosecutor said in a statement.

The analyses carried out on the powdered and reconstituted milk of the Guigoz brand produced by Nestle consumed by the infant shortly before his death did not detect any cereulide, it said.

The results of two similar investigations in the towns of Angers and Blois are still pending.

Nestle said it remained fully available to the authorities and was collaborating transparently to contribute to any necessary clarification.

(Reporting by Sybille de La Hamaide, additional reporting by Alexander Marrow, Editing by Dominique Vidalon; Editing by Kirsten Donovan)

(([email protected]; +336 8774 4148;))

** Nestle India NEST.NS rises ahead of third-quarter results

** Shares of the Indian arm of Swiss food major Nestle jump 2.34% to 1317.80 rupees

** Analysts on average expect the Maggi instant noodles maker to post a ~8% y/y jump in profit to 7.51 billion rupees ($81.70 million) - data compiled by LSEG

** Analysts at Centrum expect an 8% y/y volume rise, led by Maggi noodles, coffee and chocolates, on strong momentum and GST rationalisation driving sequential gains

** PhillipCapital sees strong double-digit growth in beverages and confectionery and low double-digit growth in prepared dishes on wider distribution

** Peer Tata Consumer Products TACN.NS posted 38% y/y jump in third-quarter profit on falling tea prices and consumption tax cuts that increased demand for consumer goods

** NEST rated "Hold" on avg by 35 analysts; median PT at 1250 rupees, down ~50% from a year ago - LSEG data

($1 = 91.9190 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

Jan 16 (Reuters) - Nestle India Ltd NEST.NS:

• NESTLE INDIA - NOMINATION OF MR. EDOUARD MAC NAB AS EXECUTIVE DIRECTOR - FINANCE & CONTROL AND CFO

Source text: ID:nBSE7QK9kC

Further company coverage: NEST.NS

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Jan 13 (Reuters Breakingviews) - India is piling into consumer giants’ basket of troubles. Unilever ULVR.L and Nestlé NESN.S are losing pricing power in the world’s fifth-largest economy amid growing competition from nimble upstarts. It’s an unwelcome headache for the groups that are trying to revive their more established markets in Europe and the U.S. With no easy fixes, the problem may require expensive remedies.

Consumer titans were once synonymous with boringly predictable earnings. But a recent bout of management churn and intense competition has made them about as predictable as the start-ups they are now battling for market share. Last February, $140 billion Unilever replaced its CEO Hein Schumacher with its finance chief Fernando Fernandez to accelerate its growth plans. It also grappled with rising commodity prices and spun out its ice cream unit at a disappointing valuation.

Nestlé is enduring an even trickier time. The $240 billion Kitkat maker is on its third CEO in less than three years and is dealing with a decline in sales in Europe and the U.S. These factors have weighed on the groups’ share prices which are flat versus the same period last year, underperforming Europe’s Stoxx 600 .STOXX which is up nearly 20% in the same period.

In ordinary times, these groups could rely on their Indian businesses to compensate. Indeed, historically they performed better than their parents’ businesses in developed markets. At its 2016 peak, sales at Nestlé India NEST.NS grew nearly 16%, eight times the pace of the Swiss group’s European business and four times that of its Americas unit. As recently as 2021, Hindustan Unilever HLL.NS was growing turnover at a punchy 18% as Europe and the Americas only managed under 5%.

But those dynamics are changing. During the year ended March 2025 sales at HUL grew just 2% , down from double digits two years earlier. Meanwhile, Nestlé ’s Indian business grew 1% in 2024. That run rate means India can barely contribute much more to these groups' top lines than it currently does - 2% and 11% for Nestlé and Unilever respectively.

More concerning for investors, however, is the effect this is having on these groups' profitability. EBITDA margins of Hindustan Unilever and Nestlé India are off pandemic-era peaks and could remain below those levels at least until 2027, according to forecasts compiled by Visible Alpha.

The bosses of these businesses blame the recent weakness on rising commodity prices and high inflation which, coupled with stagnating incomes in the aftermath of Covid, have diminished Indians’ purchasing power.

The danger for investors is the decline may intensify. Affluent urban Indians are increasingly shopping for essentials on e-commerce platforms Eternal ETEA.NS and Swiggy SWIG.NS, which use a network of mini warehouses to deliver everything from milk to umbrellas in 10 minutes. These apps enable challenger brands like Honasa Consumer’s Mamaearth and Investment Corporation of Dubai-backed snackmaker Slurrp Farm to display their brands alongside legacy names like Sunsilk and KitKat, robbing Unilever and Nestlé of their storied distribution edge.

Big groups also missed the boat on premiumisation. Indian consumers have become aspirational. That’s birthed whole categories from grooming products to pancake mixes that Unilever, Nestlé and their large rivals are struggling to compete in.

Amid these forces, consumer group boardrooms face two unpalatable choices. They can jack up prices to protect margins but are likely to lose market share in the hypercompetitive Indian market. Alternatively, they can sacrifice margins to boost growth but that means fewer spoils to share with investors.

The first option hardly seems feasible as smaller and more agile rivals are only likely to take more market share from larger groups. Meanwhile, demand for private labels is growing which will put even more pressure on pricing. For now, investors may have to accept lower margins as Unilever and Nestlé try to protect their businesses and invest more heavily in new products.

The risks are plain to see in these groups' valuations. HUL now trades at 47 times forward earnings, down from 65 times in 2021 and lagging supermarket chain Avenue Supermarts' AVEU.NS 69 times.

For now, there are no easy fixes. Launching their own quick commerce offerings makes little sense for consumer giants as users of the existing apps are proving increasingly sticky. A less immediate but more effective way to counter the loss of pricing power is to rejig their product mix. HUL and Nestlé will have to ensure their presence across categories and locations so that consumers rising up the value chain choose their brands over upstarts. A bigger investment in agile AI-enabled tracking of sales trends at mom-and-pop retailers could help with that.

Acquiring fast-growing brands is another option. HUL's 2025 purchase of personal care brand Minimalist valued its target at 9 times its trailing sales, on par with its own multiple. But buying one of India's top online platforms is out of the question: Eternal and Swiggy are delivery service-based companies that would be a clunky fit in these sprawling manufacturing businesses.

Businesses may also need to rethink marketing in a country where close to two-thirds of the population is under the age of 35 and shopping choices are increasingly based on influencer recommendations. HUL spent 10% of its revenue on sales and marketing in the year to March 2025, while its personal-care rival Honasa shelled out 57%. If the Unilever unit raised marketing spend by 10%, its EBITDA margin would go down 87 basis points, Breakingviews calculations based on Visible Alpha estimates show.

To be sure, all these options involve squeezing margins in the short term to ensure staying power in a crowded market. For now, consumer giants will have to add India to their growing list of fixer upper projects.

Follow Shritama Bose on LinkedIn and X

(Editing by Aimee Donnellan; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Jan 13 (Reuters Breakingviews) - India is piling into consumer giants’ basket of troubles. Unilever ULVR.L and Nestlé NESN.S are losing pricing power in the world’s fifth-largest economy amid growing competition from nimble upstarts. It’s an unwelcome headache for the groups that are trying to revive their more established markets in Europe and the U.S. With no easy fixes, the problem may require expensive remedies.

Consumer titans were once synonymous with boringly predictable earnings. But a recent bout of management churn and intense competition has made them about as predictable as the start-ups they are now battling for market share. Last February, $140 billion Unilever replaced its CEO Hein Schumacher with its finance chief Fernando Fernandez to accelerate its growth plans. It also grappled with rising commodity prices and spun out its ice cream unit at a disappointing valuation.

Nestlé is enduring an even trickier time. The $240 billion Kitkat maker is on its third CEO in less than three years and is dealing with a decline in sales in Europe and the U.S. These factors have weighed on the groups’ share prices which are flat versus the same period last year, underperforming Europe’s Stoxx 600 .STOXX which is up nearly 20% in the same period.

In ordinary times, these groups could rely on their Indian businesses to compensate. Indeed, historically they performed better than their parents’ businesses in developed markets. At its 2016 peak, sales at Nestlé India NEST.NS grew nearly 16%, eight times the pace of the Swiss group’s European business and four times that of its Americas unit. As recently as 2021, Hindustan Unilever HLL.NS was growing turnover at a punchy 18% as Europe and the Americas only managed under 5%.

But those dynamics are changing. During the year ended March 2025 sales at HUL grew just 2% , down from double digits two years earlier. Meanwhile, Nestlé ’s Indian business grew 1% in 2024. That run rate means India can barely contribute much more to these groups' top lines than it currently does - 2% and 11% for Nestlé and Unilever respectively.

More concerning for investors, however, is the effect this is having on these groups' profitability. EBITDA margins of Hindustan Unilever and Nestlé India are off pandemic-era peaks and could remain below those levels at least until 2027, according to forecasts compiled by Visible Alpha.

The bosses of these businesses blame the recent weakness on rising commodity prices and high inflation which, coupled with stagnating incomes in the aftermath of Covid, have diminished Indians’ purchasing power.

The danger for investors is the decline may intensify. Affluent urban Indians are increasingly shopping for essentials on e-commerce platforms Eternal ETEA.NS and Swiggy SWIG.NS, which use a network of mini warehouses to deliver everything from milk to umbrellas in 10 minutes. These apps enable challenger brands like Honasa Consumer’s Mamaearth and Investment Corporation of Dubai-backed snackmaker Slurrp Farm to display their brands alongside legacy names like Sunsilk and KitKat, robbing Unilever and Nestlé of their storied distribution edge.

Big groups also missed the boat on premiumisation. Indian consumers have become aspirational. That’s birthed whole categories from grooming products to pancake mixes that Unilever, Nestlé and their large rivals are struggling to compete in.

Amid these forces, consumer group boardrooms face two unpalatable choices. They can jack up prices to protect margins but are likely to lose market share in the hypercompetitive Indian market. Alternatively, they can sacrifice margins to boost growth but that means fewer spoils to share with investors.

The first option hardly seems feasible as smaller and more agile rivals are only likely to take more market share from larger groups. Meanwhile, demand for private labels is growing which will put even more pressure on pricing. For now, investors may have to accept lower margins as Unilever and Nestlé try to protect their businesses and invest more heavily in new products.

The risks are plain to see in these groups' valuations. HUL now trades at 47 times forward earnings, down from 65 times in 2021 and lagging supermarket chain Avenue Supermarts' AVEU.NS 69 times.

For now, there are no easy fixes. Launching their own quick commerce offerings makes little sense for consumer giants as users of the existing apps are proving increasingly sticky. A less immediate but more effective way to counter the loss of pricing power is to rejig their product mix. HUL and Nestlé will have to ensure their presence across categories and locations so that consumers rising up the value chain choose their brands over upstarts. A bigger investment in agile AI-enabled tracking of sales trends at mom-and-pop retailers could help with that.

Acquiring fast-growing brands is another option. HUL's 2025 purchase of personal care brand Minimalist valued its target at 9 times its trailing sales, on par with its own multiple. But buying one of India's top online platforms is out of the question: Eternal and Swiggy are delivery service-based companies that would be a clunky fit in these sprawling manufacturing businesses.

Businesses may also need to rethink marketing in a country where close to two-thirds of the population is under the age of 35 and shopping choices are increasingly based on influencer recommendations. HUL spent 10% of its revenue on sales and marketing in the year to March 2025, while its personal-care rival Honasa shelled out 57%. If the Unilever unit raised marketing spend by 10%, its EBITDA margin would go down 87 basis points, Breakingviews calculations based on Visible Alpha estimates show.

To be sure, all these options involve squeezing margins in the short term to ensure staying power in a crowded market. For now, consumer giants will have to add India to their growing list of fixer upper projects.

Follow Shritama Bose on LinkedIn and X

(Editing by Aimee Donnellan; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Dec 10 (Reuters) - Nestle India NEST.NS said on Wednesday its finance chief Svetlana Boldina will step down with effect from January 31, 2026.

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane Venkatraman)

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Dec 2 (Reuters) - Nestle India Ltd NEST.NS:

• NESTLE INDIA - RECEIVES TAX PENALTY OF 82.8 MILLION RUPEES

Source text: ID:nBSEbZ7r8M

Further company coverage: NEST.NS

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** Nestle India NEST.NS extends gains to climb 1% to 1,289 rupees, its highest level in more than one year

** Stock rose as much as 5.3% on Thursday after the Maggi noodles maker reported higher quarterly profit, led by rebound in urban demand

** Centrum analysts call results a "positive surprise", highlighting a pick-up in revenue momentum and volume-led growth

** Results boosted by strong recovery in sales volumes, says ICICI Direct, adding softening coffee and cocoa prices to support margins in the second half
** Stock rated "hold" on avg; median PT is 1,210 rupees, per data compiled by LSEG

** YTD, stock up ~19% vs FMCG index's .NIFTYFMCG 1.2% decline

(Reporting by Kashish Tandon in Bengaluru)

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Oct 16 (Reuters) - Nestle India Ltd NEST.NS:

• NESTLE INDIA Q2 PROFIT 7.53 BILLION RUPEES

• NESTLE INDIA Q2 REV FROM OPS 56.44 BLN RUPEES

• MILK PRICES ARE EXPECTED TO SOFTEN AFTER THE FESTIVE SEASON

• GLOBAL SUPPLY, DEMAND FOR COCOA PROJECTED TO BALANCE, DUE TO CORRECTION IN DEMAND

• EDIBLE OIL PRICES TO REMAIN FIRM, MAY RISE FURTHER DUE TO TIGHT SUPPLY, DEMAND AT GLOBAL LEVEL

• COFFEE PRICES ANTICIPATED TO STABILIZE

• COFFEE PRICES MAY DECREASE AS UPCOMING CROPS IN VIETNAM, INDIA APPEAR TO BE NORMAL

Further company coverage: NEST.NS

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Sept 30 (Reuters) - Nestle India Ltd NEST.NS:

• NESTLE INDIA LTD - NESTLÉ INDIA SIGNS MOU WITH MINISTRY FOR INVESTMENTS

• NESTLE INDIA - INVESTMENTS IN PROJECTS IN ODISHA, EXISTING MANUFACTURING LOCATIONS

Source text: ID:nBSE5dqlXy

Further company coverage: NEST.NS

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Add details, context in paragraphs 2, 5, 7-14

By Nikunj Ohri and Aditi Shah

NEW DELHI, Sept 1 (Reuters) - India plans to cut consumption tax by at least 10 percentage points on nearly 175 products ranging from shampoos and hybrid cars to consumer electronics, two sources said, revealing new details of Prime Minister Narendra Modi's tax overhaul.

The biggest reform of the goods and services tax system in nearly a decade comes amid strained trade ties with the U.S., with Modi making repeated calls for increased use of Indian products. Modi first flagged his reform plan last month on Independence Day when he said he would make daily products cheaper for people in the world's fifth largest economy.

His proposal includes reducing goods and services tax (GST) on consumer items such as talcum powder, toothpaste and shampoo from 18% to 5%, which is likely to boost sales at companies like Hindustan Unilever HLL.NS and Godrej Industries GODI.NS.

Air conditioners and television sets could see GST drop from 28% to 18% ahead of the Diwali shopping season starting in October, when brands like Samsung 005930.KS, LG Electronics 066570.KS, and Sony 6758.T dominate sales.

India's GST council, which is headed by federal Finance Minister Nirmala Sitharaman and has representation from the country's states, is expected to finalise the list of items for tax cuts in a meeting on September 3-4.

The finance ministry did not immediately reply to an email seeking comments on this story.

The proposed tax cuts are also aimed at cushioning the expected fall in exports to the United States by boosting domestic consumption, helping raise farm incomes and encouraging self-reliance among Indian manufacturers.

India is planning to cut consumption tax on key export items like fertilisers, farm machinery and tractors and their parts to 5% from 12% or 18% at present. The reduction also extends to the textile sector - one of India's largest exporters - that has been hard hit by U.S. President Donald Trump's tariff blitz.

CARS AND COLAS

In a win for Japanese carmakers Toyota Motor 7203.T and Suzuki Motor 7269.T, Modi's government has proposed reducing GST on small petrol hybrid cars to 18% from 28%. The carmakers have for years lobbied for cuts to tax on a technology they say is cleaner than petrol cars.

Lowering the tax on hybrids, which use a combustion engine and electric motor to power the vehicle, will bring it closer to the 5% GST on electric cars.

Indian EV makers Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS have previously expressed fears that reducing the tax on hybrids risks derailing the country's electrification ambitions.

The government has also proposed cutting the tax on motorcycles and scooters with an engine capacity of less than 350cc, which mainly includes commuter vehicles and covers 95% of close to 20 million two-wheelers sold in India last fiscal year by companies including Bajaj Auto BAJA.NS, Hero MotoCorp HROM.NS and TVS Motor TVSM.NS.

The proposed tax cuts are expected to lead to a resurgence in the sale of small cars in the world's third-largest automobile market - a boost for Maruti Suzuki MRTI.NS, India's largest carmaker, as well as rivals Hyundai Motor HYUN.NS and Tata Motors TAMO.NS.

However, bigger cars, categorised as those longer than 4 meters in length and with a large engine capacity, will see a higher GST of 40%, up from 28%, but the government is expected to lower additional levies to keep the overall rate the same at around 50%.

India is also considering raising rates on items like coal as well as services like betting, casinos and horse racing while maintaing levies on colas and other carbonated drinks made by the likes of PepsiCo PEP.O, Coca-Cola KO.N and homegrown Reliance Industries RELI.NS, despite calls for tax cuts.

(Reporting by Nikunj Ohri and Aditi Shah; editing by Toby Chopra and Mark Heinrich)

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Rewrites throughout, updates stock moves

By Kashish Tandon and Chandini Monnappa

Aug 18 (Reuters) - Indian auto and consumer stocks rallied on Monday, with the auto index .NIFTYAUTO jumping nearly 5% to a 10-month high after the government's plans of sweeping tax cuts, including lower goods and services tax (GST) on small cars.

The government's plan to lower GST on small cars to 18% from 28%, among other changes, as part of tax reforms unveiled by Prime Minister Narendra Modi on Friday, is expected to spur demand and boost consumer spending.

The plans are likely to be announced by Diwali, a major, five-day Hindu festival in October and India's biggest shopping season as households traditionally splurge, leading to the country's consumption cycle peaking around the festival.

"These are strong tailwinds for the market with potential to take it higher," said VK Vijayakumar, chief investment strategist at Geojit Investments, calling the timing of the next major GST reforms a "big positive".

"Sectors like autos and cement, which are presently in the 28% tax slabs, are expected to benefit," he said.

Urban consumers have been tightening their belts in recent quarters, squeezed by high living costs and sluggish income growth. A cut in GST on small cars, the auto-market's most price-sensitive segment, could fire up festive season demand, giving middle-class buyers a break.

Auto stocks .NIFTYAUTO led sectoral gains on the Nifty 50 .NSEI index, and were set for their best day since June 5, 2024.

Maruti Suzuki MRTI.NS and Hyundai Motor India HYUN.NS jumped 8% and 9%, respectively, to a record high.

Additionally, the simpler two-rate structure - slabs of 5% and 18%, with the 12% and 28% slabs scrapped - would make a host of products cheaper, from butter and fruit juices to dry fruits, offering a lift to consumer goods firms and shoppers.

Consumption stocks such as Hindustan Unilever HLL.NS, Nestle India NEST.NS and Dabur DABU.NS gained between 4% and 7%, powering the FMCG index .NIFTYFMCG 1.8% higher.

(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)

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By Aditya Kalra

NEW DELHI, Aug 11 (Reuters) - From McDonald's and Coca-Cola to Amazon and Apple, U.S.-based multinationals are facing calls for a boycott in India as business executives and Prime Minister Narendra Modi's supporters stoke anti-American sentiment to protest against U.S. tariffs.

India, the world's most populous nation, is a key market for American brands that have rapidly expanded to target a growing base of affluent consumers, many of whom remain infatuated with international labels seen as symbols of moving up in life.

India, for example, is the biggest market by users for Meta's WhatsApp and Domino's has more restaurants than any other brand in the country. Beverages like Pepsi and Coca-Cola often dominate store shelves, and people still queue up when a new Apple store opens or a Starbucks cafe doles out discounts.

Although there was no immediate indication of sales being hit, there's a growing chorus both on social media and offline to buy local and ditch American products after Donald Trump imposed a 50% tariff on goods from India, rattling exporters and damaging ties between New Delhi and Washington.

McDonald's, Coca-Cola, Amazon and Apple did not immediately respond to Reuters queries.

Manish Chowdhary, co-founder of India's Wow Skin Science, took to LinkedIn with a video message urging support for farmers and startups to make "Made in India" a "global obsession," and to learn from South Korea whose food and beauty products are famous worldwide.

"We have lined up for products from thousands of miles away. We have proudly spent on brands that we don't own, while our own makers fight for attention in their own country," he said.

Rahm Shastry, CEO of India's DriveU, which provides a car driver on call service, wrote on LinkedIn: "India should have its own home-grown Twitter/Google/YouTube/WhatsApp/FB -- like China has."

To be fair, Indian retail companies give foreign brands like Starbucks stiff competition in the domestic market, but going global has been a challenge.

Indian IT services firms, however, have become deeply entrenched in the global economy, with the likes of TCS TCS.NS and Infosys INFY.NS providing software solutions to clients world over.

On Sunday, Modi made a "special appeal" for becoming self-reliant, telling a gathering in Bengaluru that Indian technology companies made products for the world but "now is the time for us to give more priority to India's needs."

He did not name any company.

DON'T DRAG MY MCPUFF INTO IT

Even as anti-American protests simmer, Tesla TSLA.O launched its second showroom in India in New Delhi, with Monday's opening attended by Indian commerce ministry officials and U.S. embassy officials.

The Swadeshi Jagran Manch group, which is linked to Modi's Bharatiya Janata Party, took out small public rallies across India on Sunday, urging people to boycott American brands.

"People are now looking at Indian products. It will take some time to fructify," Ashwani Mahajan, the group's co-convenor, told Reuters. "This is a call for nationalism, patriotism."

He also shared with Reuters a table his group is circulating on WhatsApp, listing Indian brands of bath soaps, toothpaste and cold drinks that people could choose over foreign ones.

On social media, one of the group's campaigns is a graphic titled "Boycott foreign food chains", with logos of McDonald's MCD.N and many other restaurant brands.

In Uttar Pradesh, Rajat Gupta, 37, who was dining at a McDonald’s in Lucknow on Monday, said he wasn’t concerned about the tariff protests and simply enjoyed the 49-rupee ($0.55) coffee he considered good value for money.

"Tariffs are a matter of diplomacy and my McPuff, coffee should not be dragged into it," he said.

(Reporting by Aditya Kalra; Additional reporting by Saurabh Sharma, Praveen Paramasivam and Aditi Shah)

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