Global consumer product companies such as Coca-Cola, Mondelez, and Nestle are increasing their investments in India to boost production capacities. The growth in the Indian market has prompted these companies to expand their operations and invest in increasing their manufacturing capabilities.
Coca-Cola’s President & Chief Financial Officer, John Murphy, stated that the company will increase its capital investment to build capacity for its India business, which experienced robust growth in 2023. Mondelez International saw strong double-digit growth in its India unit in 2023, driven by both chocolates and biscuits, prompting the company to plan an uptick in capex to invest in the Indian market. Nestle India also reaffirmed its investment plans, intending to make significant investments till 2025.
L’Oreal Group’s CEO, Nicolas Hieronimus, emphasized the potential of the Indian market, stating that India and Indonesia will see an incremental 250 million people join the global middle class by 2030, creating a significant opportunity for consumer products companies. Unilever also expressed its commitment to investing behind its brands and capabilities in India, acknowledging the country’s potential amidst urban consumption outpacing rural growth.
This surge in investments and focus on increasing production capacities comes at a time when organized players in the consumer product industry are facing competition from regional and unorganized players. With the Indian market showing promising growth potential, multinational consumer product companies are looking to capitalize on this opportunity by scaling up their presence and operations in the country.
The investments and expansion plans indicate a strong bullish sentiment among global consumer product manufacturers regarding the growth prospects in the Indian market. With the increasing middle-class population and evolving consumer preferences, these companies are set to strengthen their foothold in India’s consumer product industry.
