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Consumer Non-Durables

Nestle India Ltd.

Company Background

Nestle India is a subsidiary of the world's largest food and beverage company, Swiss-based Nestle. The parent company, together with holding company Maggi Enterprises, holds an approximately 63% stake in Nestle India, which has eight factories and four branch offices. In the milk products and nutrition segment, Nestle India contributes nearly 50% of domestic sales.

 

Suresh Narayanan, who joined the company in 1999, is Nestle India's chairman and managing director since August 2015. A post graduate in economics, he has over 30 years of experience in the consumer goods industry. Before replacing Etienne Benet as managing director in India at the height of Maggi noodle crisis, Narayanan was chairman and CEO of Nestle Philippines. Prior to Nestle, he had stints in Hindustan Unilever and Colgate Palmolive.

 

Nestle's association with India goes back to 1912, when it began trading as the Nestle Anglo-Swiss Condensed Milk (Export), importing and selling finished products in the Indian market. After India's independence from British rule in 1947, the country's new economic policies stressed local production, leading to Nestle forming a company in India and setting up its first factory at Moga in the northern state of Punjab in 1961 to develop the nation's milk infrastructure. The company's activities in India provide livelihoods for about 1 million people, including farmers and suppliers of packaging materials.

 

Business Summary

Nestlé India Ltd. engages in the manufacture and sale of various food products. It offers milk product, nutrition, beverages, prepared dishes and cooking aids, and confectionery. It operates through the EveryDay, Nestea, Nescafe, Maggi, Kitkat, and Milkybar brands. The company was founded on March 28, 1959 and is headquartered in Gurgaon, India.

Financial Highlights

Dec 2019 INRUSD
Revenue123,172.60M1,749.03M
Gross Profit49,720.70M706.02M
Operating income25,590.80M363.38M
Income before tax26,749.90M379.84M
Net income19,695.50M279.67M
EBITDA28,754.40M408.30M
Diluted EPS204.272.90
Dividends Per Share1622.30
Total Assets71,981.70M1,008.45M
Total liabilities52,659.10M737.74M
Total equity19,322.60M270.70M
Operating cash flow24,829.10M352.57M
Currency in INRCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 81,232.70M 90,948.20M 99,700.60M 112,364.50M 123,172.60M
Gross Profit 29,857.10M 35,196.70M 37,905.30M 46,437.40M 49,720.70M
Operating income 12,762.50M 16,518.40M 18,403.30M 23,169.70M 25,590.80M
Income before tax 8,136.30M 15,453.80M 18,393M 24,289.50M 26,749.90M
Net income 5,632.70M 10,013.60M 12,251.90M 16,069.30M 19,695.50M
EBITDA 16,235.10M 20,055.10M 21,825.80M 26,526.40M 28,754.40M
Diluted EPS 58.42 103.86 127.07 166.67 204.27
Dividends Per Share 48.50 63 86 115 162
Total Assets 61,964.90M 69,484.10M 75,160.90M 82,679.90M 71,981.70M
Total liabilities 33,786.50M 36,654M 40,949M 45,937.40M 52,659.10M
Total equity 28,163.90M 32,823.30M 34,205.90M 36,737.40M 19,322.60M
Operating cash flow 12,054M 16,016.60M 19,870.90M 23,041.20M 24,829.10M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 1,265.75M 1,353.54M 1,531.14M 1,641.75M 1,749.03M
Gross Profit 465.22M 523.81M 582.12M 678.49M 706.02M
Operating income 198.86M 245.83M 282.62M 338.53M 363.38M
Income before tax 126.77M 229.99M 282.46M 354.89M 379.84M
Net income 87.76M 149.02M 188.15M 234.78M 279.67M
EBITDA 252.97M 298.47M 335.18M 387.57M 408.30M
Diluted EPS 0.91 1.54 1.95 2.43 2.90
Dividends Per Share 0.75 0.93 1.32 1.68 2.30
Total Assets 936.64M 1,023.78M 1,177.56M 1,184.27M 1,008.45M
Total liabilities 510.70M 540.06M 641.55M 657.98M 737.74M
Total equity 425.71M 483.62M 535.91M 526.21M 270.70M
Operating cash flow 187.82M 238.36M 305.16M 336.65M 352.57M

Valuation Measures

Dec 2019
PER--
ROA25.46%
ROE70.26%
Operating margin20.77%
Profit margin15.99%

Key executives

  • Chairman & Managing Director: Suresh Narayanan
  • CFO, Director & Executive Director-Finance: David Steven McDaniel
  • Executive Director & Technical Director: Martin Roemkens
  • Secretary, Senior VP-Legal & Compliance Officer: Balasubramaniam Murli
  • Director-Corporate Affairs: Sanjay Khajuria

Shareholders

  • Nestle SA (62.7%)
  • Life Insurance Corp of India (2.8%)
  • SBI Funds Management Pvt Ltd. (1.4%)
  • Axis Asset Management Co. Ltd. (1.3%)
  • The Vanguard Group, Inc. (0.8%)
  • BlackRock Fund Advisors (0.5%)
  • First State Investments (Hong Kong) Ltd. (0.5%)
  • UTI Asset Management Co. Ltd. (Investment Management) (0.5%)
  • Aberdeen Standard Investments (Asia) Ltd. (0.3%)
  • SBI Life Insurance Co. Ltd. (Investment Portfolio) (0.2%)

Contact Details

  • Website:http://www.nestle.in
  • Address: Nestlé House, Jacaranda Marg, M Block, Gurgaon, 122002, India
  • Phone: +91.124.2389300

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