Nestle India’s new MD Tiwary outlines growth path; 'hopes to' double revenue, protect margins

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Manish Tiwary, the new Chairman and Managing Director of Nestle India, has outlined an ambitious vision for the company's future, targeting accelerated growth while steadfastly maintaining profitability. In a recent interview on CNBC TV18, Tiwary said 'he would hope to' double the company's revenue in less than eight years, when asked. This would be an acceleration from the previous eight-year cycle it took to go from ₹10,000 crore to ₹20,000 crore in revenue.

Further, when queried about achieving ₹30,000 crore top line by 2030, Tiwary said it is possible, contingent on sustained market momentum. Crucially, he affirmed that this growth would be pursued within the company's established margin band of 22-24%. "I believe we have the tools to grow without sacrificing margin at this point of time," he stated, emphasising that business must be played with a net -- balancing top-line expansion with bottom-line performance.

To fuel this growth, Nestle India plans to increase its advertising expenditure at a rate faster than its top-line growth. However, Tiwari assured this would not erode margins, as the company intends to leverage technology to drive optimisation across the organisation. He likened ad spends to cholesterol, noting that it can be both good and bad, requiring a thoughtful and deliberate approach.

A key pillar of this future growth is the pet food category. Tiwari identified it as a business he is "very, very interested in," acknowledging that while Nestle has a presence, it is still in its early days. His ambition is to create the same level of trust with pet parents as the company has built with parents over generations through brands like Cerelac. Despite recent controversies, he affirmed that trust in the Cerelac brand remains absolute.

Tiwari projects that Nestle's newer businesses—including Sly Professional, pet food, the DRL joint venture, and Nespresso—will grow at 2-3x the rate of its main portfolio. He also highlighted the immense headroom for growth across all categories, with the highest monthly penetration for any of its products standing at just 16-17%. To tap this potential, the company will focus on growing its rural business at one and a half times the normal rate.

While Nestle's global portfolio includes categories like packaged drinking water and ice cream, Tiwari clarified that his immediate focus is on innovating and extracting more value from current brands like KitKat and Maggi noodles. The guiding mantra for the company will be "bigger, bolder, fewer." Concluding with his leadership philosophy, Tiwari highlighted three core principles: an unwavering focus on the consumer, leveraging technology for efficiency, and maintaining a bias for action.