Nestle to invest Rs 1,500 cr in the next two-three years

CHENNAI: Betting big on the domestic market, Nestle India today said it would invest close to Rs 1,500 crore over the next two-three year period as part of its expansion plans, a top company official said here today.

"We want to change the rules of the game.. we believe the growth in this country is on track...," Nestle India Chairman and MD Antonio Helio Waszyk told reporters here.

Elaborating on the investments proposed he said the company has embarked on a Rs 360 crore investment plan for their new factory at Nanjangud in Karnataka.

"In March (2010) we opened this new factory... Still some machines are being imported... total investments here is about Rs 360 crore..we are expanding it by 20 per cent...", he said.

Stating they have been supported by their parent company Nestle South Africa for the expansion plans, he said, "We can sell more (here in India), but we do not have capacity. Whatever we are doing is for the future."

Besides, he said they would invest another Rs 600 crore in Haryana for the Green Field facility. "This project will be completed by end of this year...," he said.

The company would also invest Rs 200 crore by this year-end for manufacturing chocolates in Punjab.

For its noodle and confectionery business, the company is setting up two manufacturing facilities one each in Goa and in Himachal Pradesh at an investment of Rs 1,200 crore. "This investments will continue until the second quarter of next year...” he said.

"I am not fighting for slice of cake...I am here to take a larger piece of cake...," he said.

The company has also planned to set up a new Research and Development unit in Karnataka at an investment of $ 50 million. "Right now we are constructing it...," he said.

Later Waszyk said they had planned to bring in new products under the coffee segment.

"We are preparing for four new products... it will be coming out in Winter 2011..."

Currently, Nestle has the "Classic" and "Sunrise" brand in India. According to him, Nestle India holds 37 per cent market share in the coffee segment.