Technoglitch
Core Member
Nestle India Ltd expects to consolidate its position in the instant noodles market in the coming months with fresh launches, chairman and managing director Suresh Narayanan said on Thursday.
“I don’t have a magic ball… Maggi is already gaining market share. We have managed to cover 75-80% of distribution… Results will be visible in the coming quarters,” Narayanan said on the sidelines of a programme organized by industry lobby group PHD Chambers of Commerce and Industry.
There will be relaunch of a few old varieties of Maggi noodles, and some new ones will be launched over the next few quarters, Narayanan said.
Besides Maggi noodles, the company is planning to add new products to its dairy portfolio as part of its plan to reduce dependence on Maggi noodles that accounted for about 30% sales in 2014.
“The focus will be on adding value to existing products and strategic new launches,” he added.
Equity analysts have maintained their long-term view positive on Nestle India. “We remain positive on Nestlé from 2-3 years perspective, being a strong play on urban revival. But over medium term the company’s margins and volumes will remain under pressure,” Edelweiss Securities analyst Abneesh Roy said in a note on 15 February.
Meanwhile, on Wednesday, the district authorities of Barabanki in Uttar Pradesh have claimed that it has found fresh samples Maggi noodles “sub-standard” as tests conducted by a Lucknow-based state-owned laboratory, showed excess presence of ash content in Maggi Masala.
Nestle India counts on fresh Maggi launch to gain market consolidation - Livemint
“I don’t have a magic ball… Maggi is already gaining market share. We have managed to cover 75-80% of distribution… Results will be visible in the coming quarters,” Narayanan said on the sidelines of a programme organized by industry lobby group PHD Chambers of Commerce and Industry.
There will be relaunch of a few old varieties of Maggi noodles, and some new ones will be launched over the next few quarters, Narayanan said.
Besides Maggi noodles, the company is planning to add new products to its dairy portfolio as part of its plan to reduce dependence on Maggi noodles that accounted for about 30% sales in 2014.
“The focus will be on adding value to existing products and strategic new launches,” he added.
Equity analysts have maintained their long-term view positive on Nestle India. “We remain positive on Nestlé from 2-3 years perspective, being a strong play on urban revival. But over medium term the company’s margins and volumes will remain under pressure,” Edelweiss Securities analyst Abneesh Roy said in a note on 15 February.
Meanwhile, on Wednesday, the district authorities of Barabanki in Uttar Pradesh have claimed that it has found fresh samples Maggi noodles “sub-standard” as tests conducted by a Lucknow-based state-owned laboratory, showed excess presence of ash content in Maggi Masala.
Nestle India counts on fresh Maggi launch to gain market consolidation - Livemint
