Nestle India has received approval from the government for its proposal under the production-linked incentive (PLI) scheme for processed fruits and vegetables.
In June 2021, the fast-moving consumer goods (FMCG) had submitted its proposal towards the government’s production linked, PLI scheme for the food processing sector under the eligible categories of ready-to-eat/ready-to-cook and processed fruits and vegetables, according to a regulatory filing by Nestle.
Earlier this year, the government approved the PLI scheme for the food processing industry to support the creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets.
The food processing ministry has said that it has approved 60 applications of investment proposals by packaged food companies, such as Amul, ITC, HUL, Britannia Industries, Parle Agro, Tata Consumer Products, and Nestle India seeking benefits under the PLI scheme.
In March this year, the government had approved a PLI scheme for the food processing sector, entailing an outlay of Rs 10,900 crore.
The aim of the scheme is to support food manufacturing entities with stipulated minimum sales and willingness to make a minimum stipulated investment for expansion of processing capacity and branding abroad to incentivise the emergence of strong Indian brands. The scheme will be implemented over a six-year period from 2021-22 to 2026-27.
Nestle India said it has always believed that the PLI scheme for the food processing sector will help farmers and the food processing industries.
“It is overall a good step for an industry that has one of the better ratio of capital investment and employment generation,” the company said.
In the July-September quarter of the financial year 2021-22, Nestle India registered a net profit of Rs 617 crore, compared to Rs 538 crore in the previous April-June quarter, marking a growth of 15 percent quarter-on-quarter. The company’s revenue from operations in the second quarter of the current fiscal stood at Rs 3,882.6 crore, compared to Rs 3,476.7 crore in the preceding June quarter, marking a growth of 12 percent quarter-on-quarter. The growth in revenue was driven mainly from broad-based domestic sales growth which increased by 10.1 percent and – largely on volume and mix.