According to him, trend in agro commodities prices is clearly going upwards and would further exacerbate if the monsoon is not good as predicted earlier.
Nestle India's instant noodles brand Maggi, whose sales were severely hit by the Food Safety and Standards Authority of India (FSSAI) ban in 2015, has now cornered close to 60 per cent market share, a top company official said.
Speaking to CNBC-TV18 Suresh Narayanan, Chairman, Nestle India said the demonetisation drive undertaken by the government is a bold step to ensure longer term economic interests are protected.
The company, however, is cautious that rising commodity prices could pose a challenge to the pricing strategy of various players in the industry.
Interest rate cut coupled with good monsoon should translate into healthy demand and investments, says Nestle India CMD, Suresh Narayanan. Certainly fast moving consumer goods should benefit too, he says.
Nestle India Chairman and Managing Director Suresh Narayanan expects good overall growth in the coming quarter owing to good monsoons and the upcoming festive season.
In an exclusive chat with CNBC-TV18, industry captains shared their views on the importance of brand building and increasing value for customers.
The company, which currently sells two proprietary products in the category, said it is waiting for regulatory clarity on foods for special medical purposes before it launches more such items in India.
This period to be 'dawn after a dark night' for Nestle India, which is strongly emerging out of the noodle fiasco, says Suresh Narayanan, CMD of the company.
The FMCG major has said that Q1 results were impacted by Maggi Noodles Issue in 2015.
Besides, the company claimed that it has strengthened its leadership position in the category with more than 50 percent market share after five months of the relaunch.
Commenting on the comeback journey of Maggi, Narayanan said: "Distribution of Maggi has almost reached 75 to 80 percent of what we were earlier at. When the other variants would come then I hope that we would be able to catch-up the balance part of the distribution. We are on the road to recovery."
The company, which follows January-December financial year, had posted a net profit of Rs 326.38 crore during the October-December quarter of 2014-15.
Nestle India said since 2014, it has ICC (Internal Complaints Committee) across its all 12 units with the presence of an external member for prevention of sexual harassment.
In the aftermath of the Maggi crisis, Nestle India is aggressively trying to increase the consumption of its flagship instant noodles brand eying double digit growth, a top company executive said.
BRIDGE School of Management held its 2nd Graduation Day where a new cohort of industry ready professionals graduated after ...
The company relaunched Maggi masala noodles on November 9, five months after it was banned by the FSSAI following a Bombay High Court order.
Nestle India said that there are still some states where ban on Maggi hasn't been taken off and the company is in the process of getting necessary clearance for that.
In an investor meet, Nestle said its strategy would entail fixing issues with current brands, renovating and extending existing brands into adjacent categories. The company would then explore newer categories depending on the opportunity, margin, differentiation. Volume growth is an important priority for management now.
After a five month ban, Maggi is all set to make a comeback. The instant noodles will be available around the country starting today. CNBC-TV18 caught up with Nestle India's Managing Director Suresh Narayanan.
The stock dipped by 1.99 percent to Rs 6,156.50 at BSE. On NSE, it was down 2.23 percent to Rs 6,150.
This week on Storyboard Nestle India‘s MD Suresh Narayanan talks about the marketing and the communication challenges faced by Maggi.
Nestle is now awaiting the results of fresh tests at court-appointed laboratories, expected by early October, after which it can begin manufacturing.
Bolstered by the Bombay High Court order overturning ban on Maggi, Nestle India plans to bring back the popular instant noodles back in the market by end of this year subject to certain clearances.
Nestle SA's Maggi noodles comply with food safety standards, authorities in Goa said, in the first such ruling since the popular instant snack was pulled from stores after another state lab reported high lead conten