Nestle to focus on performing brands: CMD Suresh Narayanan
6 Sept 2017 11:30 PM IST
Manesar: FMCG major Nestle India on Wednesday said it is consolidating product portfolio to focus on performing brands, having introduced 43 products following the Maggi crisis about two year ago.
The company is in the process of reviewing products in chocolate, confectionery, coffee, milk and some other segments, which were launched 15-18 months ago as part of its drive to introduce 'innovation-based' products.
"Now we are in the process to see what is working and what is not working. We cannot support so many products going forward," Nestle India CMD Suresh Narayanan told reporters here.
He said the company will take stock of brands, which are performing well in some regions or at national level or even at some channels.
"You need to prioritise on what you need to focus on, and that core exercise is happening," he added. Post Maggi crisis in 2015, Nestle had ramped up innovations to expand its portfolio beyond the noodles business, which contributed over one third of its total sales.
"The process is now happening because 12 to 15 months of exercise has taken place and that's really what we are in," Narayanan said, adding that the next step could not "happen without looking what you have in the plate".
However, he also added that many of the categories have a long way to go in terms of penetration.
"Along with consolidations, the fundamental core of the company strategy is to increase penetration and go for volume growth," Narayanan said.
The company is expecting to continue its volume-led growth, however, its value would decline because of GST, he said.
Next Story
