Chairman and Managing Director of foods major and Maggi-maker Nestle India, Suresh Narayanan, spotlighted the Indian consumption market’s challenges and dynamics during a fireside chat at The Growth Summit in Delhi on Wednesday. The event was presented by YES BANK and CNBC-TV18, with Managing Editor Shereen Bhan moderating the discussion.
Acknowledging the challenges within the “belly of the market”, Narayanan highlighted India’s robust long-term consumption story, emphasising the role played by the middle and upper-middle class in driving consumption.
Narayanan pointed out a fundamental issue affecting consumption in India—food inflation. He expressed concern about the adverse impact of rising inflation on consumer spending patterns and outlined the challenges faced by companies, including Nestle, in navigating these economic headwinds.
“India is undeniably a strong consumption story in the long term. However, we must recognize and address the hurdles, especially in the middle and upper-middle-class segments. There is a belly of the market that is hurting somewhere, and we need to understand and respond to those pain points,” said Narayanan.
Narayanan revealed that the foods major Nestle faced higher inflation in 2023 compared to the preceding years, including 2020 and 2021.
“The business landscape is evolving, and companies are navigating unprecedented inflationary pressures. Nestle has experienced the impact of higher inflation in 2023, and we are actively strategizing to mitigate these challenges and maintain our commitment to delivering quality products to consumers,” he added.
Read More: Middle-income households showing some “signs of stress”, says Nestle MD Suresh Narayanan