Nestle India Ltd.'s Managing Director and Chairman Suresh Narayanan downplayed worries of a consumption slowdown in India.
“There has been a slowdown in rural consumption but the doomsday scenario that has been put in the sector is premature,” Narayanan told BloombergQuint in an interview, adding that one needs to wait for a couple of quarters for a better picture to emerge.
He said that the maker of Kit Kat chocolates and Maggi instant noodles has witnessed double-digit growth in the last six quarters. The rural sector, which accounts for 25 percent of Nestle's sales, is able to maintain stability.
Narayanan however, didn't rule out price hikes if pressure due to rising raw material costs continues.
Nestle, Narayanan said, aims to launch 36 products this year as it chases volume-led growth.
Nestle has forayed into organic food products, with the global launch of its ready-to-cook children's breakfast cereal, Ceregrow. Narayanan said the firm has been working on the segment for the last two years, with products made of organic ragi, milk, fruits and wheat.
“Organic products is a nascent trend in India,” Narayanan said, adding that this is part of the company's shift to premiumisation. “In an urban India which is seeking quality products in variety, this offers a new benchmark.”
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