Manish Tiwary, Chairman and Managing Director, Nestle India
Nestle India on Tuesday said while there are concerns around geopolitical and inflationary headwinds, it remains confident about navigating short-term challenges, given lower penetration of its categories, headroom for growth in rural regions and strengthening of premiumisation trends.Stating that “overall consumption could moderate in the short term”, in an investor presentation, the company added that West Asia conflict and potential El-Nino impact on monsoons remain key monitorables for F&B sector growth.Speaking at an investors call, Manish Tiwary, Chairman and Managing Director, Nestle India, said: “There are a few headwinds...there is a little bit of impact on food inflation. We are seeing a little bit of slowdown in market growth as reported by Nielsen. Given where we are on our journey in terms of penetration, rural growth and premiumisation, I remain quite confident of our ability to navigate these short-term blips.”He noted that the geopolitical situation in West Asia is driving up costs of energy, packaging materials and edible oils, besides causing shipping disruptions and currency volatility. Tiwary said the company is deploying value-chain productivity measures to mitigate the impact. “I still believe the medium to long-term growth story for us does not get impacted and there is a great amount of confidence we have on our growth journey in India, which continues to offer one of the most compelling long-term consumption stories,” he added.Nestle India has delivered double-digit and resilient growth over the past five years, he noted. “ If you look at the last few quarters, we have moved into double-digit volume growth consistently, and this volume growth reinforces that our growth is broad-based supported by our strong brands, distribution width and accelerating household penetration,” he added.Rural reachThe company said that it is deepening rural reach with total coverage at 2.19 lakh villages by FY26. Tiwary said the contribution of “rural segment” for the company is lower than its peers. “Rural has been one of the more resilient parts of the market when compared to urban. We have the brands, the proposition, the reach and packs at relevant price points. What we are eager is that rural grows faster than urban, and that’s what is more important and it is doing that...” he stated.The packaged food major said its premium portfolio’s contribution has risen to 14 per cent by FY26-end and has been growing at a 17 per cent CAGR since 2021. “I think together with our partners in e-commerce and q-commerce, these capabilities are helping us scale faster in urban markets, drive our innovations faster, and premiumise much faster,” Tiwary said. Published on August 4, 2026
