The Swiss food and beverage (F&B) giant Nestlé is building a new facility in India's state of Odisha, giving the country's drive for local manufacturing a significant boost. Nestlé India, the local branch of the business with its headquarters in Vevey, Switzerland, has already received authorization from the authorities.

Nestlé, which is also India's largest food and beverage firm, will build a production facility with a focus on producing packaged food products. The location in the Khurda district of Odisha, close to the state capital Bhubaneswar, has already been determined.

They claim that the corporation intends to invest approximately Rs 900 crore to build the packaged goods facility and might hire close to 800 workers. This will be Nestlé's tenth manufacturing facility in India; the company has been operating there since 1912.

Nestlé built its ninth facility in Sanand, Gujarat, last year with an expenditure of more than Rs 700 crore to increase local manufacturing of its popular Maggi instant noodles, which have seen a sharp increase in sales in recent years. These initiatives are a part of the Nestlé India capex programme, which its chairman and managing director Suresh Narayanan launched a few years ago and is worth Rs 2,600 crore.

Narayanan has a good reason for wanting to boost Nestlé's production capacity. Its net sales during Covid-19 increased to Rs 16,790 crore at a CAGR of 11%. Additionally, its net profit increased by 6.7% CAGR to Rs 2,305 crore in CY22, despite the sharp inflation in commodity costs. Nestle's fiscal year runs from January to December.

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