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Nestle India to infuse Rs 1,100 crore in new KitKat production line at Sanand factory, Gujarat

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ISN Team
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Fast-moving consumer goods (FMCG) major Nestle's India unit Nestle India has announced a significant expansion of its confectionery manufacturing capacity by adding a new KitKat production line at its Sanand factory in Gujarat. 

The company says the move will boost its annual output by 15,000 tonnes once the project is completed, which is expected to happen within the 2024-25 financial year.

The investment of around Rs 1,100 crore will come from Nestle India’s internal accruals.

Part of a larger capital expenditure plan

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Nestle India’s plan to set up this new production aligns with its broader capital expenditure plan of Rs 5,800 crore between 2020 and 2025 for greenfield and brownfield projects.

The company also makes KitKat at its Ponda factory in Goa, and the new capacity in Gujarat is designed to meet the growing demand for its popular chocolate wafer brand.

Nestle India's financial performance

The company reported a net profit of Rs 688.01 crore for the December quarter, up from Rs 655.61 crore a year earlier. Sales of products stood at Rs 4,762.13 crore, showing a rise over the previous December quarter’s Rs 4,583.63 crore. 

In the December quarter, Nestle India's total expenses jumped by 6.18% to Rs 3,861.91 crore. The company's domestic sales were also up 3.23% to Rs 4,566.05 crore, as against Rs 4,421.79 crore in the corresponding October-December period.

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