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Nestlé India is sharpening its focus on rural, tier-II and tier-III markets as it looks to capture the next phase of consumption growth, with Chairman and Managing Director Manish Tiwary highlighting these markets as key drivers of the company's long-term expansion strategy.
Addressing shareholders at the company's 67th Annual General Meeting (AGM), Tiwary said India presents immense growth opportunities, with future consumption expected to be driven by deeper household penetration, wider distribution and stronger consumer engagement across diverse geographies.
He stressed that India's consumer scene is far from homogeneous, requiring a nuanced and localised approach. "India is not one market and it is certainly not one consumer. It is dozens of markets layered on top of each other by income, geography, language, aspirations, habit and taste. The opportunity ahead of us is not just to serve the India that already knows us well," he said.
Reflecting on FY26, Tiwary described it as a challenging year for India's consumption economy, with food inflation significantly influencing household spending patterns beyond pricing alone.
"FY26 was not a straightforward year for India's consumption economy. Food inflation shaped household choices in ways that went far beyond price," he said.
He noted that consumers adapted by changing pack sizes, purchase frequency and category preferences, while rural demand remained closely linked to monsoon performance and farm incomes. Urban demand, although resilient, continued to vary across income segments.
Despite these challenges, Tiwary said Nestlé India delivered a strong performance through disciplined execution, with more Indian households purchasing its products than ever before. The company recorded its highest-ever domestic sales of ₹23,071.5 crore, supported by double-digit volume-led growth and market share gains.
According to Tiwary, Nestlé India's long-term strategy remains centred on penetration-led volume growth. "A sustainable growth in a country as large and dynamic as India must come from reaching more households and the frequency with which consumers choose our brands," he said, adding that the company continues to strengthen its distribution network across the country.
To support this strategy, Nestlé India has added nearly 5.2 lakh retail outlets across urban, semi-urban and rural markets since April 2023, significantly expanding the availability of its product portfolio. The company is also stepping up investments in tier-II and tier-III towns, alongside premiumisation, technology adoption and capacity expansion to fuel its next phase of growth.
