India was Nestle’s fastest-growing market in the first half of 2026, with the company eyeing further growth through higher volumes, premiumisation, manufacturing and exports
India is emerging as one of Nestle SA’s most important growth markets and could soon enter the Swiss food and beverage major’s top five markets globally by revenue contribution, Chief Executive Officer Philipp Navratil said on Wednesday.
The country is currently among Nestle’s 10 largest markets worldwide and was the group’s fastest-growing market in the first half of 2026. Navratil, who is visiting India, said the company sees significant room for further expansion, supported by rising consumption, urbanisation and a growing middle-class population.
Speaking at a select media roundtable, Navratil said India had been one of the group’s strongest-performing markets and its fastest-growing market during the first half of 2026. He added that India’s entry into Nestle’s top five markets by topline contribution was now within reach.
Asked about the timeline, he indicated that the goal was not a distant one and that Nestle’s India team was working towards achieving it in the foreseeable future.
India A Key Priority For Nestle
Navratil described India as one of Nestle’s largest priority markets and said the country was leading growth among the group’s emerging markets. He attributed this momentum to Nestle’s extensive distribution network, the expanding consumer base, increasing urbanisation and the expected growth of India’s middle class.
He said Nestle had been able to reach consumers effectively through deep distribution, while demographic trends in India continued to create significant opportunities for the company.
Navratil also said India offered substantial opportunities across both value and premium product categories, making it one of the group’s most important strategic markets.
Nestle India reported strong financial performance during the June quarter, with growth supported by higher volumes. The Indian arm of the maker of Maggi, KitKat and Nescafe posted a 48 per cent year-on-year increase in net profit to Rs 958.7 crore, while consolidated revenue from operations rose 25 per cent to Rs 6,378.2 crore.
The performance followed a period of strong momentum for the Indian business. Nestle had also highlighted India’s high double-digit growth in the June quarter while announcing its global earnings, describing the performance as very strong. India led growth within the company’s Asia, Oceania and Africa zone during the period.
Focus On Volume-led Growth
The company has outlined five priorities for its India operations, including strengthening its product portfolio, improving operational efficiencies, building a performance-driven culture and accelerating growth through RIG, or real internal growth.
Navratil said RIG-led growth would involve increasing volumes by reaching more consumers and households, while also using pricing and premiumisation opportunities to maintain affordability and offer value across different consumer segments.
The strategy reflects Nestle’s focus on expanding its consumer base while simultaneously catering to value-conscious buyers and consumers seeking premium products.
The company has also set up a new hub focused on developing offerings for value-conscious consumers amid intensifying competition in the packaged foods market.
Navratil said Nestle did not fear competition but took it seriously. He added that the new hub would focus on developing high-quality products with an appropriate value proposition.
He also said India would play a wider role in developing products and capabilities for Nestle’s global operations. According to Navratil, India’s capabilities, knowledge and expertise made it an important base for the group’s work in categories such as noodles and spices.
India As An Export And Manufacturing Hub
Beyond domestic consumption, Nestle is looking to expand India’s role in its global manufacturing and export network. The Indian business currently exports products, including Maggi noodles and coconut milk, to several international markets.
Navratil said Nestle was already using India as a production base for exports but saw scope to expand this role further. He added that the scale of the Indian market allowed the company’s manufacturing facilities to reach capacity relatively quickly, making the country an attractive destination for investment.
Nestle currently operates nine manufacturing facilities in India, while its tenth factory is under development in Odisha. The company had announced an investment of Rs 5,000 crore in the country in 2022.
Although Navratil did not disclose a fresh investment commitment, he said Nestle’s investment in India would remain higher than the group average, reflecting the country’s stronger growth rate and long-term potential. He added that the company was prepared to continue investing to capture the opportunities offered by the Indian market.
Navratil, who took over as chief executive of Nestle SA on 1 September 2025, also met Prime Minister Narendra Modi on Monday along with Nestle India Managing Director and CEO Manish Tiwary. According to the company, the discussions focused on Nestle’s continued commitment to India and its contribution to the country’s growth and development agenda.
Despite the company’s ambitions to expand rapidly, Navratil said Nestle would not compromise on product quality or accelerate decisions merely to achieve growth targets. He said the company’s long-standing approach in India remained centred on consumer needs and that Nestle would continue to bring consumers along with its growth plans.
