Nestle India Limited, the leading FMCG giant, has announced a major expansion of its Maggi Noodles production capacity at its Sanand Factory in Gujarat, reinforcing its confidence in India’s growing instant noodles market.
Expansion Highlights
- Investment: ₹85 crore, funded via internal accruals.
- New Capacity: Additional 20,600 tons per annum, raising total output from 121,000 tons to 141,600 tons.
- Growth Impact: Around 17% boost in production capacity.
- Timeline: To be implemented in FY2025-26.
The current capacity utilization at Sanand stands at ~80%, and the new line will ensure Nestle is well-prepared to meet rising demand.
Part of Long-Term Capex Plan
This expansion is aligned with Nestle India’s 2020–2025 capital expenditure plan, which focuses on both greenfield and brownfield projects to enhance overall production capabilities.
Strategic Importance
The Sanand expansion strengthens Nestle India’s supply chain resilience and supports its nationwide production network, as Maggi Noodles are also manufactured at other plants across India. This distributed strategy allows the brand to cater efficiently to regional markets while ensuring steady supply during demand surges.
Market Outlook
Maggi remains one of India’s most iconic food brands, and Nestle’s investment signals strong confidence in the sustained demand for instant noodles. The additional capacity is expected to bolster Nestle’s competitive position and potentially expand its market share in India’s fast-growing convenience food segment.
Conclusion
By expanding Maggi production at its Gujarat facility, Nestle India is preparing for future demand while reinforcing its leadership in the instant noodles category. The new line, once operational in FY2025-26, is set to play a crucial role in the company’s growth trajectory and long-term strategy.
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