Nestle India bets on smaller cities as food inflation squeezes growth

Nestle India posted FY26 domestic sales of ₹23,071.5 crore, up ~15% YoY. CMD Manish Tiwary is steering the maker of Maggi, KitKat and Cerelac toward tier-2/tier-3 penetration, with ₹2,000 crore capex over two years and reinvestment in digital and advertising.

— Filed Sat, 4 Jul, 2026, 00:54 IST · Source ET Small Business · Updated

Nestle India reported FY26 domestic sales of ₹23,071.5 crore, up ~15%. CMD Manish Tiwary said the firm is betting on tier-2/tier-3 markets, penetration-led volume growth, and reinvesting in digital and advertising amid food inflation.

Why this matters

Extends Nestle India's small-town push under CMD Tiwary, following the addition of 520,000 outlets since April 2023 and plans for a 10th factory in Odisha with higher digital spend.

Retail-company signals are accelerating, up +540700% QoQ.