Nestle India CMD Suresh Narayanan responds to the controversy on added sugar in baby food products.
Nestle India tests zero-sugar infant food amid regulatory scrutiny. CMD assures compliance, targets growth & introduces Nespresso.
Nestle India is currently trialling a zero-sugar option for its infant food line in the country. During an exclusive discussion with CNBC-TV18, Chairman and Managing Director Suresh Narayanan stressed the company's adherence to local regulations, mentioning that they have submitted samples to the Food Safety and Standards Authority of India (FSSAI). Narayanan noted a 30% reduction in added sugar across their products over the past two years.
Emphasizing the nutritional value of their leading product, Ceralac, Narayanan assured consumers of its compliance with all essential nutrition standards.
While Nestle India faces scrutiny from food safety regulators regarding alleged sugar and honey additions to its infant milk and cereal offerings in several countries, including India, a recent investigation by Public Eye revealed formulation discrepancies between affluent nations and developing regions.
In India specifically, popular Nestlé baby-food brands were found to contain elevated levels of added sugar, with each serving of Cerelac averaging nearly three grams.
Narayanan expressed confidence in Nestle India's growth trajectory, aiming to revive volume growth and targeting a robust revenue increase of 10–11%, alongside healthy margins ranging from 20% to 22%.
Regarding Nestle India's partnership with Dr. Reddy's, Narayanan highlighted significant revenue prospects, projecting ₹1,000–1,500 crore within a year or two of the launch.
Additionally, Narayanan disclosed plans to introduce Nespresso in India over the next five years, underscoring a commitment to quality maintenance and competitive pricing.