Nestle India focusing on innovation and renovation to drive growth, says CMD Narayanan

In an exclusive conversation with CNBC-TV18's Anu Sharma, Suresh Narayanan, CMD of Nestle India, spoke in detail about the increase in the company's advertising and promotional expenses and the strategy going forward.

“One of the core foundations of Nestle India business model has been a model that centers on increased volume growth, increased penetration and increased brand focus,” Narayanan said, adding that it also hinges crucially on innovation and renovation as drivers of growth.

He said new innovations and renovations do demand increased level of advertising and promotional expenses, "so the company has increased the spends on that in the last quarter of last year by 370 basis points over the previous year same quarter. The previous year’s same quarter was also slightly depressed because of goods and services tax (GST) introduction."

“We have spent almost 30-40 percent of monies in the last quarter of 2018 to support the new launches,” Narayanan said.