Nestle serves smaller portions to turn rural
Anglo-Swiss food products major Nestle India has embarked on a strategy of offering smaller units of its chocolates, priced as low as Rs 2, to establish itself in rural areas.business Updated: Apr 07, 2010 22:05 IST
Anglo-Swiss food products major Nestle India has embarked on a strategy of offering smaller units of its chocolates, priced as low as Rs 2, to establish itself in rural areas.
“The rural market in the country is growing faster than the urban locales,” said Antonio Helio Waszyk, chairman and managing director, Nestle India.
“The organised trade is growing in rural locales and Nestle with a strong brand value wants to lead this growth saga,” he said.
He however did not reveal the number of sale points the company expects. Also, the bulk of the company’s sales would continue to come from urban areas.
Industry estimates showed Nestle India, with products such as Munch (wafer chocolate) KitKat, Milkibar and Polo (mint confectionery) commands a 27 per cent market share in the Rs 2,600-3,000 crore organised chocolate market.
Cadbury is the market-leader with an estimated share of about 68 per cent.
Nestle is ramping up its production facility, and is setting up two new production centres in the country. Its popular Maggi brand, which includes culinary products as ketchup, instant noodles, soups and spice cubes, contributes about 22 per cent to the company’s total revenues, which stood at Rs 5,129 crore in 2009.