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Nestle India restructures units

business Updated: Jul 27, 2007 02:04 IST
Archana Khatri
Archana Khatri
Hindustan Times
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Nestle India, the company behind products like Maggi noodles and Kit Kat chocolates, has restructured its business, with an increased focus on its dairy and nutrition business that yields 48 per cent of its sales.

A company official who did not want to be identified told Hindustan Times that in order to make its business in India more focused, the food, dairy, confectionary, nutrition and beverage lines which were under the control of a single managing director will now have independent business heads directly responsible for profits and losses in their respective units.

They all will report to the company chairman.

The company has stepped up efforts on its dairy business, which has been growing at 20 percent annually, outpacing the 10-11 percent average growth of Nestle India as a whole.

It launched a 98 percent fat -free probiotic curd in Delhi on Thursday, aiming to woo weight-conscious high-end consumers. It also plans to come up with more yogurt based products in a year’s time.

The company is also looking at improving the cold chain infrastructure as its current chilled dairy product has a shelf life of only 15 days.

"As the cold chain infrastructure is not what is required, we cannot have products with a longer shelf life,” Nestle India's General Manager of dairy business Mayank Trivedi told a news conference.

As the company improves its cold chain infrastructure, it plans to take chilled dairy products to cities other than Delhi, Mumbai, Kolkata, Banglore, Chennai and Hyderabad.

According to the company's estimate, Nestle India has 30 percent of the chilled dairy market in the six cities. "We plan to take it to 40 per cent within a year,” Trivedi said.

Nestle India is also planning to bring in products from its international portfolio, modifying it to the Indian taste buds. It has also undertaken capacity expansion at its existing manufacturing facilities in Moga (Punjab) and Samalkha (Haryana), and is also sprucing up its distribution.