Nestle rises 2% as company plans to invest Rs 5,000 crore in India

Shares of Nestle India rose as much as 1.72% in Monday’s trade after its CEO Mark Schneider said on Friday that global food & beverage conglomerate Nestle SA plans to invest Rs 5,000 crore in India in the next three-and-a-half years by 2025.

The investment would be on capex (capital expenditure), setting up new plants, acquisitions and expansion of the product portfolio of the company. Nestle, which currently operates nine plants across India is also looking at new locations to set up manufacturing capacity.

"When you look into the investment in this country and the investment plan through 2025, we are talking about Rs 5,000 crore and that compares to Rs 8,000 crore over the last 60 years when we started manufacturing in this country," he said.

This investment is not only for accelerating and ramping up Capex alone but also goes into a whole lot of development works, brand building and meaningful contributions on the ground, Schneider said.

At 10.07 am, the stock was trading 0.71% higher at Rs 18,639.20 over the previous day’s closing of Rs 18,507.15 a piece. The scrip has risen nearly 11% in the last six months, while it has fallen nearly 5% year-to-date.

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