The Indian arm of Swiss FMCG brand Nestle announced on Tuesday that it will soon foray into organic food segment with the launch of organic products in milk and nutrition category. “We will be launching Organic Food Products in the category ‘Milk Products and Nutrition’ in the coming months,” Suresh Narayanan, Chairman and Managing Director, Nestlé India said in a statement. The maker of Maggi noodles has various products under the milk and nutrition segment. However, this will be Nestle’s first venture in organic products. As of now, Nestle has Baby and me, Ceregrow and Nangrow products in the Milk Products and Nutrition category.
Key takeaways from Q1 results
Nestle India announced its Jan-Mar quarter results today and said that the company witnessed an increase of 9% in total sales increase. The same on the domestic front recorded double-digit growth of 10.2%. Profits of the company in the quarter have risen to over Rs 463 crore with a 9.25% rise. The company has also mopped up a total income of Rs 3,076.14 crore, it said in a BSE filing.
However, Nestle has witnessed a drop of 8.9% in export sales because of lower coffee exports to Turkey. The company also said that its case regarding Maggi is still proceeding in the Supreme Court. Nestle delivered strong performances with its popular products Maggi, KitKat and Munch.
Recently, rival FMCG brand ITC also announced its quarterly results. Confirming the rural slowdown narrative, ITC said that the FMCG industry is reeling under the sluggish growth from rural India. “After a promising first half, growth in the second half of the year, particularly in the last 3-4 months was muted due to tight liquidity conditions and sluggish rural demand,” ITC said in the quarter results report. However, Nestle’s press statement did not say anything on rural demand slowdown.