Nestle to tap inorganic growth through meaningful opportunities: CEO

Nestle, believed to be in race to acquire GlaxoSmithKline's consumer nutrition business including the Horlicks brand, will continue to tap inorganic growth for gaining additional market share, if it finds meaningful opportunities, a top company official said.

However, when asked about reports over Nestle's bid for GlaxoSmithKline's (GSK) nutrition business portfolio, the company declined to comment.

"Acquisitions we have been pursuing everywhere over the years. Its part of our business model of being a growing company and gaining additional market presence. So when there are prudent meaningful opportunities, we are interested," said Nestle CEO Mark Schneider.

Nestle, which has a growth target of "mid single digit in 2020", said it strongly believes in organic growth, and considers this as a 'lifeblood'.

When asked about the development over GSK consumer nutrition business, he said: On those specifics we are not commenting.

On the India business, which is one of the 'key markets' for Nestle, the company said it would continue to lead as a pure play food and beverage company.

"I am a very pleased with how our Indian company has developed very solid leadership, very nice organic growth and when it comes to being a pure play food and beverage company, we are leading in that market and we are proud of that," Schneider said on a media roundtable with the visiting journalists here.

Schneider further noted that the Swiss major is also betting on online sales channel, where it is witnessing a faster growth. Its online sales grew three times faster than its worldwide offline sales and contributed 7-8 percentage of overall globally revenue.

"We are committed to strong presence in the online activity. Our online sales grow about three times faster than the company average... that gives you a sense on how much more strongly we make progress online overtime it is expected to increase, Schneider added.

Nestle India, ranks 15 in terms top markets for the company globally and has crossed Rs 10,000-crore sales mark in 2017.

The group had a overall sales of CHF 89.8 billion (USD 90 billion) in 2017.

As a business strategy, the company is trying to renovate about a third of its products every year, by focusing on "innovation and renovation" to ensure healthier food and beverages for children by adding more fruits and vegetables, reducing the amount of sugar and fortifying products.

"We are quiet involved in making sure our products stay competitive," he said adding healthy food to children is Nestle's biggest priority.