"Major Global Consumer Product Manufacturers Ramp Up Investment in India to Expand Production Capacity"

In a bullish move reflecting confidence in India's growth trajectory, major global consumer product companies like Coca-Cola, Mondelez, and Nestle are bolstering investments to scale up production capacities. Fueled by robust growth in 2023, these industry giants are strategically positioning themselves to capitalize on India's expanding consumer market.

Coca-Cola, a leading beverage conglomerate, reported strong consumer demand in key markets such as India during the December quarter. John Murphy, President & Chief Financial Officer of Coca-Cola, emphasized the company's intention to significantly increase capital investments to enhance capacity for its India operations, alongside its growing fairlife brand.

Mondelez International, renowned for brands like Cadbury and Oreo, experienced "strong double digits" growth in India throughout 2023 and the December quarter, driven by the popularity of both chocolates and biscuits. The company's management announced plans for increased capital expenditure, highlighting the need to expand capacity in markets like India to accommodate stellar volume growth over the past five years. Mondelez has also intensified its distribution efforts, now covering approximately 5 million out of 9 million stores across India directly and indirectly.

Nestle India's Chairman and Managing Director, Suresh Narayanan, reaffirmed the company's commitment to its investment plans through 2025, with projected expenditures ranging between ₹6,000-6,500 crore. This substantial ramp-up underscores Nestle's strategic focus on capturing opportunities in the Indian market.

L’Oreal, a global beauty leader, identified India as one of its top 15 markets worldwide, citing significant growth potential driven by the emergence of a burgeoning middle class with a penchant for sophisticated beauty products. Nicolas Hieronimus, CEO of L’Oreal Group, underscored the company's local footprint and its ability to cater to evolving consumer preferences in India.

Despite market headwinds, Unilever's management remains optimistic about Hindustan Unilever's position as a powerhouse in the Indian market. The company vows to sustain investments in brand building and operational capabilities to navigate heightened competition from regional and unorganized players.

This surge in investment comes amidst a backdrop of urban consumption outpacing rural growth and increased competition within the organized sector from regional and unorganized players. With India poised for continued economic expansion, global consumer giants are poised to play a pivotal role in shaping the country's evolving consumer landscape.

HBL