• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

NEW DELHI, March 7

"HAVE a happy day", the tagline from Nestle has taken on different dimensions for the company in India.

Not only has its net profit in 2002 clocked a 16.4 per cent growth over the previous year at Rs 201.52 crore, Nestle India has also been catapulted among the "top performers" of Nestle's operations in Asia, Oceania and Africa.

Another significant development at the company's board-meeting here today is the reappointment of Nestle India's Chairman and Managing Director, Mr Carlo M. Donati, for another five years, subject to shareholder approval.

The company has registered a 14.6 per cent growth in domestic sales volumes for 2002, over the previous year and this, despite continued uncertainty and depressed consumer demand, a company statement issued here today said. However, total export volumes declined by 7.4 per cent. The drop in volume is mainly due to the restructuring of tea business and certain opportunity sales that materialised in 2001.

In value terms, domestic sales grew by 12.4 per cent , while export sales declined by 23.8 per cent over the past year. The decrease in export sales has been mainly because of lower realisation on instant coffee exports to Russia, due to depressed prices of green coffee, ocean freight and a product mix that favoured low realisation bulk packs as compared to the previous year.

Mr Donati said the company's growth in sales and profits, in a depressed economic environment was because of the company's efforts to "innovate and renovate", among other things.

The company's 16.4 per cent growth in net profit in 2002 has been attributed to effective control over costs coupled with benefits resulting from favourable commodity prices during the first half of 2002 and reversal of a provision of Rs 5.83 crore under `other expenditure' due to a favourable decision in litigation. Lower interest costs due to improved cash flows/lower interest rates has also contributed to the increase in net profit. However, profits have been negatively impacted by exceptional and additional depreciation, impairment of assets and higher provision for contingencies.

The year 2002 has been a difficult year for industry, with the lack of buoyancy in the economy. Adapting to the consumer's purse, Nestle had rolled out new and improved products, facilitated by the technology received from the Nestlé Group under the General License agreement.

Article E-Mail :: Comment :: Syndication

Stories in this Section
BG group eyes LNG deal for NTPC project

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line