INDIA – FMCG major Nestle India has launched its own Direct-to-Consumer (D2C) platform, marking a quick and bold move into the fast-growing online channel.
The company would launch its D2C platform MyNestle in Delhi-NCR and will expand to other parts of the country, said Nestle India Chairman and Managing Director Suresh Narayanan in the earnings statement of the company.
Narayanan expressed confidence that the platform has been “created specifically keeping the consumer needs in mind.
He also said MyNestle will delight the consumer in every way with curated product bundles, personalized gifting, subscriptions, discounts, and much more.
Moreover, consumers can also try gourmet recipes on the site and get free nutrition counseling, Narayanan added.
In the Q3 results, the e-commerce channel contributed 7.2 percent of Nestle India’s sales, largely fueled by new, emerging formats such as ‘quick commerce’ and ‘click & mortar’.
In the same quarter, profit increased 8.3% year-on-year (YoY) to Rs 668 crore, higher than the market estimate of Rs 648 crore while its quarterly revenue increased 18.3% YoY to Rs 4,591 crore.
The company’s total sales were up by 18% of Rs 4,567 crore in Q3, becoming the highest sales growth r in the last five years, the exchange filing said.
The Maggi-maker said its profit from operations for the said quarter stood at 20.3% of sales while the earnings per share stood at Rs 69.3.
“We are witnessing early signs of stability in prices of a few commodities such as edible oils and packaging materials. However, fresh milk, fuels, grains, and green coffee costs are expected to remain firm with the continued increase in demand and volatility,” Nestle said in the filing.
During the financial announcement, Narayanan commented that this achievement has been on continued strong volume and mix evolution with broad-based double-digit growth across all categories.
Growth has been very strong in the large metros and mega cities and continued to be robust across smaller town classes including rural markets,” he noted.
The subsidiary of the Swiss conglomerate said the proliferation of the Indian product portfolio in new markets and expanding new categories, especially wider offerings in Maggi and confectionery remain a key focus.
Nestle India Ltd to open fresh milk procurement center in Jammu
Meanwhile, Nestle India is to open a Fresh Milk Procurement center in Jammu at an initial stage and then in other parts of J&K in a later stage.
Kulbhushan Khajuria, the J&K Dairy Farming Association (JKDFA) President said Nestle India’s decision to open the fresh milk procurement center will definitely help the region achieve self-sufficiency in dairy products.
He added that the local dairy cooperatives in J&K may be provided with handholding on the technical, administrative, and procurement side, to reduce their dependence on dairy products sourced from outside.
According to Khajuria, the initiative will help the region to develop the dairy sector with sustainable livelihood in rural areas based on Nestle pattern.
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