Nestle India signs MoU with government to expedite investment in food sector

INDIA – Nestle India has signed an MoU with the Ministry of Food Processing Industries to expedite investments in greenfield and brownfield projects across Odisha and existing manufacturing sites over the next 2-3 years.

This initiative, part of its US$564 million (Rs 5,000 crore) expansion plan by 2025, aims to create employment and boost capabilities, including a new factory in Odisha.

Chairman and Managing Director Manish Tiwary said the MoU is expected to create direct and indirect employment opportunities, which reinforces its commitment to “India’s growth story”.

In 2022, the Swiss FMCG major announced it would invest Rs 5,000 crore in expansion in India by 2025.

Nestle India is investing in new capabilities and capacities, by increasing product lines in existing factories and setting up the Sanand factory in Gujarat, for Confectionery and Prepared Dishes and Cooking aids, according to the latest annual report of the company. The company said its tenth factory in India is on the anvil in Odisha.

Nestlé’s Indian arm invests US$83.9M in joint venture with Dr Reddy’s

In 2024, the company announced a US$83.9 million investment in its joint venture with Hyderabad-based pharmaceutical giant Dr Reddy’s Laboratories.

The investment, revealed in a recent stock-exchange filing, sees Nestlé India retain a 49% stake in the venture, with Dr Reddy’s holding the remaining share. Dr Reddy’s has made a parallel investment of Rs7.34bn in the venture.

Initially announced in April, the collaboration aims to address various health and wellness categories, including metabolic health, hospital nutrition, healthy aging, general wellness, women’s health, and child nutrition.

Nestlé India also disclosed that it has signed a business transfer agreement for the slump sale of its existing medical nutrition and nutraceuticals business to the joint venture, valued at a lumpsum consideration of Rs2.19bn.

This transfer is expected to streamline operations and integrate resources more efficiently within the new venture.

The joint venture began operations in the second quarter of Nestlé India’s 2024/2025 financial year, which commenced on April 1.

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE