Quick commerce is helping Nestle India's premium products reach beyond metros, MD Tiwary says at AGM

Quick commerce is helping premium products reach more consumers and will remain a key growth channel for Nestle India, Chairman and Managing Director Manish Tiwary said at the company's annual general meeting (AGM) on Friday, as the FMCG major also sharpened its focus on healthier products to cater to evolving consumer preferences.

"Our omni-channel approach ensures that our brands are available across the locations and channels most convenient to our consumers. Premiumisation continues to grow in urban markets and larger towns, supported by sharper availability and strategic partnerships with key e-commerce platforms and quick commerce," Tiwary said while outlining the company's growth strategy.

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The trend is already reflecting in the company's business. According to Nestle India's FY26 annual report, online channels grew 97% during the year and contributed meaningfully to overall business growth.

Alongside expanding its digital footprint, Nestle India is continuing to reformulate products by reducing added sugar, salt and saturated fat where relevant, as consumers increasingly seek healthier choices without compromising on taste.

"Across our portfolio we continue to improve nutritional profiles where relevant, reducing added sugar, salt and saturated fat, adding positive ingredients and offering appropriate portion sizes. Any reformulation must be science-led, compliant with regulations and, very importantly, accepted by consumers," he said.

The strategy builds on the company's broader Nutrition, Health and Wellness (NHW) agenda. According to its annual report, the company continues to strengthen the nutritional profile of its portfolio through science-led innovation and product renovation, leveraging the Nestle Group's global research and development capabilities while adapting products to Indian tastes and preferences.

During the year, the company rolled out Cerelac with no refined sugar nationwide and upgraded its NAN infant nutrition portfolio. Nestle also said its AskNestle nutrition platform has recorded over 92 million visits since its launch in 2019, generated more than 717,000 personalised meal plans, and facilitated over 10.7 million access sessions to expert nutrition articles.

Penetration-led growth to remain the focus

The India arm of the Swiss multinational conglomerate is prioritising expanding its consumer base over relying on price increases, with Tiwary saying the company's growth strategy is centred on reaching more households and increasing consumption occasions.

The company has added around 5.2 lakh retail outlets since April 2023, taking its products deeper into urban, semi-urban and rural markets. Tiwary said Nestle's focus remains on increasing household penetration and building long-term consumer relationships rather than chasing short-term gains through pricing.

"The opportunity ahead is to earn the trust of the India that is just beginning to find us," he said.

He added that India's diversity requires a consumer-first approach, with differentiated products, price points and distribution strategies tailored to varying income levels, tastes and aspirations.

Health and nutrition move to the forefront

Nestle said consumers are increasingly looking for products that offer better nutrition while retaining familiar taste and affordability, prompting the company to accelerate product reformulation and innovation.

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Besides reducing salt, sugar and saturated fat across relevant products, the company said it continues to invest in science-led research, new product development and clearer nutritional labelling. It also voluntarily provides Guideline Daily Amount (GDA) information on product packaging to help consumers make informed choices.

Quick commerce and e-commerce reshape distribution

Nestle sees digital commerce as becoming an increasingly important route to consumers, particularly for premium products.

The company said it will continue strengthening its omni-channel strategy to ensure products are available across traditional retail, modern trade, e-commerce and quick commerce platforms. According to the annual report, premiumisation is gathering pace in urban markets and larger towns, supported by strategic partnerships with e-commerce and quick commerce players.

Rural India to drive the next growth phase

While digital channels are expanding rapidly, Nestle believes rural India will remain its biggest long-term growth engine.

Tiwary said rising aspirations in Tier-II, Tier-III and rural markets are shaping the next phase of India's consumption story.

Volume growth over price increases

Despite continued volatility in commodity prices, Nestle said its growth strategy remains centred on expanding household penetration and increasing purchase frequency rather than relying on price hikes.

Management said strategic sourcing, productivity improvements and operational efficiencies will continue to be the first line of defence against inflation, with pricing considered only after these measures are exhausted.

Technology to power the next leg of growth

The company is accelerating investments in digital capabilities across sales, supply chains and manufacturing.

Nestle highlighted initiatives such as touchless demand forecasting, automated replenishment systems, forecasting algorithms and manufacturing optimisation to improve agility, product availability and execution across markets.

India becomes Nestle's biggest market for KitKat and Maggi

India's strategic importance within the global Nestle network continued to strengthen during FY26.

"Maggi continues to hold a special place in Indian homes, and India remains its largest market globally," Tiwary said.

He also announced that India has become the world's largest market for KitKat.

"This year India also became the largest market for KitKat globally. Let that land for a moment. The world's most iconic chocolate bar now finds its biggest audience here in India."

Calling it a significant milestone, Tiwary added that it reflected both the company's execution capabilities and the depth of its relationship with Indian consumers.

Nutrition business shows signs of recovery

Responding to shareholder questions, Tiwary said the nutrition business improved sequentially through FY26 despite external challenges.

He cited market share gains in the second half of the year, upgrades to the NAN infant formula portfolio and the nationwide launch of Cerelac with no refined sugar as signs that the segment is regaining momentum.

Commodity inflation remains a watchpoint

Nestle acknowledged continued volatility in coffee, cocoa, energy and freight costs but said it remains focused on protecting margins through strategic procurement, productivity initiatives, digital planning tools and supply-chain optimisation.

The company reiterated that price increases would remain the last lever.