We Chose to be Boringly Consistent than Erratically Brilliant: Suresh Narayanan, Nestlé India

Whether its NESCAFE, Maggi, KITKAT or Cerelac, Nestle products enjoy a deep-rooted connection with consumers and a strong brand recall. Over 85% of Nestlé India’s portfolio holds leadership positions in their respective categories, a reflection of its market dominance and consumer trust. Central to this brand recall is Suresh Narayanan, Chairman & MD, Nestlé India, who joined the company in 1999 as Executive Vice President of Sales. Over the years, he has steered multiple business divisions.

His leadership was instrumental during the 2015 Maggi crisis, helping to restore both brand credibility and consumer confidence in a remarkably short time. In a recent conversation, Narayanan outlined Nestlé’s guiding philosophy – purpose, people, partnership, planet, and performance – besides emphasizing how performance consistency and connecting with consumers brought Nestle where it is today. 

Excerpts:  

Reflecting on your journey at the helm of Nestlé India, what have been the defining moments in the company’s growth over the past decade? 

We live in unpredictable times where adversities and possibilities go hand-in-hand. I believe that an organization develops and thrives not by yo-yos of growth and activities, but by creating a robust foundation, by building strong bonds of trust with the consumers, by nurturing its people, enhancing brands and staying rooted during tough times. 

Our investments were deliberate and thoughtful, extending beyond mere assets. We invested in innovative ideas and in the people who bring those ideas to life. We nurtured talent and fostered a culture of collaboration and growth. Every choice we made was responsible, designed to honor our principles and sustain our growth trajectory. We kept our promise of unlocking the power of food, to enhance the quality of life for today and generations to come. Encapsulated in our heartbeat – purpose, people, partnership, planet and performance.

Over the last decade, our revenue witnessed a CAGR of 10.3% while the corresponding profits from operations grew by 13.5%. In the same period, our market capitalization grew to 3.9 times and the Total Shareholder Return (TSR) CAGR was 17.0%. Just 10 years ago we had 80,000 shareholders, today, the shareholders have grown to over 550,000.

We were once seen as an urban company with a limited portfolio, but through penetration-led volume growth strategy rolled out in 2015, we now have access to more households and more consumption occasions and our brands reach two out of three households. The RUrban strategy began in 2019, and has increased RUrban distribution touchpoints to 28,240. Today we are present in approximately 209,050 villages.

We ventured into some new categories to establish robust pillars of growth, such as breakfast cereals and petcare business. Signalling the potential of health care products in India, your company has joined hands with Dr. Reddy's Laboratories Ltd, which has got on to an encouraging start, combining synergies of nutrition product portfolio and distribution reach.

 

How has Nestlé India adapted its strategy to cater to the evolving needs of Indian consumers, particularly in the post-pandemic landscape?

The pandemic gave rise to a number of trends. While some remained just that – a trend that withered in the few months after the pandemic, some of them shaped the business ecosystem more permanently. 

One such trend was an increased emphasis on brands that are trustworthy, known for their quality, safety, and better nutrition. At Nestlé India, the commitment to quality and safety of our products has always been non-negotiable. In the last decade, we have also taken several steps to improve the nutrition profile of our products. We reduced salt, added sugar and fat across products, fortified our products with key micro-nutrients and added millets to some of our key products to raise their nutritional value. 

Another trend we noticed that stood the test of time, was the spike in digital information. We bolstered our digital presence. From personalized advice on nutrition and products on AskNestle to nutritious recipes on MAGGI.in, we ensured we could help our end consumers by providing them with credible and authentic knowledge.

We observed some other trends as well that have emerged in the recent past, which may not be rooted in the pandemic. Premiumization is one of the more pronounced trends. Premium products are outpacing the category growth, and the trend is universal across urban and rural markets. Premium coffee and confectionery products have been leading the charge on the premiumization front for us.

Another trend has been the emergence of cold coffee as a category-driver. Young consumers, especially Gen Z and millennials have been exposed to the rising café culture. This has given a boost to cold coffee consumption. With relevant launches, we have not just been riding the trend but been ahead of the curve.

Can you share the company’s medium-to-long-term growth vision? Are there any new product categories or markets Nestlé India is targeting? 

We will continue to focus on penetration-led volume growth. The idea is to be present across geographies and platforms to make our products available to our consumers. 

We recalibrated and rejuvenated the portfolio launching over 150+ new products since 2015, which have contributed to 7% of sales. We will keep identifying high growth opportunity areas based on trends, consumer needs and internal capabilities. We will prioritize our portfolio based on winning value propositions, technology capabilities and market acceptability. 

With commodity price volatility and inflationary pressures, how is Nestlé managing cost efficiencies while maintaining product affordability and quality? 

Commodity price volatility and inflationary pressures have remained one of the key headwinds, across several industries in the recent past. While we have had to take some corrective measures with respect to prices for some of our brands, we remain agile and responsive, proactively mitigating inflationary risks through a comprehensive commodity procurement framework. This robust approach includes continuous monitoring of price indices, early identification of potential cost fluctuations, and efficiency-driven measures across the value chain to sustain competitiveness. Targeted cost-saving initiatives further reinforce resilience against inflationary pressures.

Innovation is a hallmark of Nestlé globally. How is Nestlé India leveraging R&D and local insights to drive product innovation?

Innovation has been at the core of Nestlé. Whether it is a cup of NESCAFÉ you drink or a KITKAT you break in, there is science and research that we all bring across to our consumers. We spend approximately $2 billion on R&D, globally each year. The purpose remains to enhance the nutritional profile of the products that we launch. 

Nestlé R&D for the South Asia region is located in Manesar. It is a fully owned subsidiary of Nestlé SA. This is the center of expertise on South Asian cuisine. It consists of a very diverse group of well-qualified experts ranging from chefs to product developers to engineers who look at converting the product propositions into an industrialized product that can be scaled up once they are launched in the relevant markets.

Several products including the ones with integration of millets – MAGGI noodles, a+ Masala Millets etc. were all developed at the R&D 

E-commerce and digital platforms have reshaped consumer behaviour. How important is the digital channel to your distribution and marketing strategy today? 

The rapid growth of quick commerce in India has been changing the consumer landscape and the increasing demand for convenience. With the proliferation of smartphones and internet connectivity, consumers are increasingly seeking faster and more efficient ways to shop. Quick commerce, with its focus on rapid delivery, has emerged as a solution to meet these evolving needs. 

Our E-commerce business has been experiencing accelerated growth, primarily driven by Quick Commerce. E-commerce business contributed 8.6% to sales in the financial year 2024-25. The growth was aided by new user acquisition initiatives through targeted digital communication across various touchpoints. This contributed approximately 45% of the e-commerce business.

Sustainability is central to Nestlé’s global agenda. What are some of the key ESG initiatives Nestlé India is focused on, particularly around packaging and climate action? 

The spectra of climate change are rapidly intensifying, demanding swift action. We have increased our reliance on renewable energy, implemented sustainable logistics practices, and minimized waste. We continue to advance our Environmental, Social, and Governance (ESG) goals, focusing on creating shared value for individuals, communities, and the planet. The four facets of our sustainability journey focused on climate, packaging, water stewardship and responsible sourcing.

We remain focused on promoting a circular economy and have transitioned to sustainable packaging. Our supply chain resilience is being strengthened. Through regenerative agricultural practices, greenhouse gas emissions are being reduced. From reducing emission footprints to promoting responsible sourcing and community well-being, our initiatives reflect our dedication to building a more sustainable future.

To cite a few examples – for every ton of production, with a 2018 baseline, we reduced our energy usage by 13%, water usage by 31% and overall GHG emissions by 51%.

In 2024-25, around 59% of the packaging of our portfolio was designed for recycling, and virgin plastic usage was reduced by over 900 tonnes through initiatives like size reduction for sachets and the introduction of Thermofoam cups for MAGGI Cuppa. 

Talent and culture are often differentiators in leadership. How are you nurturing future leaders and promoting inclusivity across Nestlé India’s workforce? 

Our people are our biggest assets, and we continuously strive to help them grow in their careers. Our focus has remained on creating an inclusive work environment where women can thrive and realize their full potential. This reflects in the industry-leading representation of women in the field sales force of Nestlé India. 

We institutionalized WIL (Women in Leadership), a six-month, tri-module, immersive programme. This first-of-its-kind programme was designed to empower our bright and dynamic women leaders. 

Responding to evolving workforce dynamics and internal leadership needs, we launched Nestlé Impact Leaders programme that transitions leaders from “Good” to “Great” by fostering psychological safety, innovation, and coachability. This strategic leadership development initiative is designed to nurture future-ready leaders who exemplify purpose, agility, empathy, and respect.