FMCG major Nestle India today said it has earmarked over Rs 450 crore to set up plants and expand existing facilities in the country during the 2010 calendar year and plans to accelerate the pace of capital investment going forward.
"Over the last three years, Nestle India spent over Rs 650 crore on capital investment and will have invested more than Rs 450 crore in 2010 alone," the company said in a statement, adding that it plans to further accelerate the pace of investment going forward.
The company said the funds will be used for expanding facilities at Bicholim and Ponda in Goa, Moga in Punjab, Nanjangud in Karnataka, Samalkha in Haryana and in new greenfield facilities.
"We will continue to invest in brands and distribution capabilities while accelerating investment in capacities to provide consumers a wide product range, from popularly positioned products for low income consumers to premium offerings," Nestle India Chairman and Managing Director Antonio Helio Waszyk said.
The company had earlier announced that it will invest Rs 350 crore to set up a new plant at Karnataka to manufacture products from its 'Maggi' brand range. It had announced plans to enhance capacity at other plants at the time, though no specific projects were elaborated.
Nestle has seven manufacturing facilities across India.
The company said the proposed capital investment will be funded through a mix of internal accruals and debt.
"A judicious mix of internal accruals and debt is foreseen to finance this high capex trajectory. Our borrowings free balance sheet and the strong credit ratings of Nestle should facilitate this strategy," Nestle India Director Finance and Control Shobinder Duggal said.
