Nestlé India Expands KitKat Production, Q3 Profit Up 5% YoY

31 Jan 2025 , 11:54 PM

Nestle India said on Wednesday it is expanding the KitKat production line at its Sanand Factory in Gujarat, doubling annual capacity to 15,000 tonnes. The investment of ₹1,100 crore for the project will be raised from internal accruals and works are expected to be completed by FY25.

This is a part of the company’s total ₹5,800 crore capital expenditure plan from 2020 to 2025, made to increase its production and to cater to rising consumer demand. Besides Sanand, Nestlé India is also manufacturing KitKat at its Ponda factory located in Goa. So, it will maintain its grip on the chocolate product line.

Q3 FY25 net profit up 4.94% YoY at ₹688.01 crore versus ₹655.61 crore in the same period of the previous fiscal. Product sales revenue up 3.89% YoY at ₹4,762.13 crore; ₹4,583.63 crore Q3 FY24.

Chairman and Managing Director Suresh Narayanan said that 3 out of every 4 product groups posted good growth through price and volume expansion.

Urban consumption softened during the quarter. “Inflation on food was a challenge, especially on coffee, cocoa, cereals and grains. Food prices of edible oil, milk, and packaging materials, however, stabilised,” he said. Total expense rose 6.18% YoY to ₹3,861.91 crore. Sales rose 3.23% from the same period last year to ₹4,566.05 crore from ₹4,421.79 crore, as steady demand kept domestic sales healthy despite macro headwinds.