Nestle India spent Rs 445 cr for ads, but just Rs 19-cr for Quality testing
In the dock over alleged lapses of food safety standards in its famous Maggi noodles, Nestle India has disclosed having spent Rs 445 core on 'advertising and sales promotion' last year, while the expenses towards 'quality testing' was less than 5 per cent of such amounts.
Similar has been the trend over the last five years, when the 'advertising and sales promotion' expenses ranged between Rs 300-450 crore annually, while expenditure on 'laboratory or quality testing' moved between Rs 12-20 crore.
Experts, however, say that similar trend could be seen at other such companies as all of them spend huge sums on brand promotions. The financial accounts of Nestle India further shows that the expenditure towards heads like 'travelling' and 'training' was higher than the same towards quality testing.
The expenditure towards 'market research' was however lower at about Rs 16 crore in 2014, up by about 69 per cent from Rs 9.7 crore five years ago in 2010.
Read more at: Nestle India: Rs 19 crore for quality testing, Rs 445 crore for ads : Delhi, News - India Today
In the dock over alleged lapses of food safety standards in its famous Maggi noodles, Nestle India has disclosed having spent Rs 445 core on 'advertising and sales promotion' last year, while the expenses towards 'quality testing' was less than 5 per cent of such amounts.
Similar has been the trend over the last five years, when the 'advertising and sales promotion' expenses ranged between Rs 300-450 crore annually, while expenditure on 'laboratory or quality testing' moved between Rs 12-20 crore.
Experts, however, say that similar trend could be seen at other such companies as all of them spend huge sums on brand promotions. The financial accounts of Nestle India further shows that the expenditure towards heads like 'travelling' and 'training' was higher than the same towards quality testing.
The expenditure towards 'market research' was however lower at about Rs 16 crore in 2014, up by about 69 per cent from Rs 9.7 crore five years ago in 2010.
Read more at: Nestle India: Rs 19 crore for quality testing, Rs 445 crore for ads : Delhi, News - India Today