October 4, 2012

Nestlé opens US$115 million dairy facility in India

Nestlé has launched an INR6 billion (US$115 million) dairy facility at Samalkha in Haryana state, India.

Haryana Chief Minister Bhupinder Singh Hooda has urged the company to take up a collective strategy with Animal Husbandry Department, Dairy Federation and private sectors in order to set up milk collection centres in the state.

Nestlé India contributes about 8% to the sales of Asia, Oceania and Africa region, and is considered to be one of its fast growing markets. As part of its growth strategy, it has been investing in expanding its distribution network, introducing new products, and has invested significantly in boosting capacity to support an anticipated growth in demand.

The Indian dairy market is currently at INR74 billion (US$1.4 billion) and each year, it is growing at about 20% and it is expected to touch INR250 billion (US$4.8 billion) in the next 10 years. Nestlé India plans to gain sizeable share in the growing market.