Nestle India gets shareholders' nod for royalty payment to parent firm

FMCG major Nestle India said Thursday its shareholders have cleared a proposal for the continuation of royalty payments to its Swiss parent firm Societe des Produits Nestle SA.

Shareholders also approved the proposal to seek their mandatory approval every five years for the fixation of royalty payment.

All resolutions, including the "one for continuity of royalty payments" were approved with an overwhelming majority at the 60th Annual General Meeting (AGM) in New Delhi, a company statement said.

Commenting on the outcome of the AGM, Suresh Narayanan, Chairman and Managing Director, Nestle India said: "I am humbled by the strong show of support from the shareholders. They have appreciated the Company's performance and shown faith in management's ability to deliver long term shareholder value.

"The shareholders also appreciated the efforts towards societal initiatives, be it in the area of rural development, nutrition, water or steps taken towards managing plastic waste."