New products, higher ad spend on Nestle's revival agenda

Nestle India will introduce new products under the Maggi brand as well as drive the growth of other categories

Nestle India will consider introducing new products, including those under the Maggi brand, while looking to drive growth of other categories with increased advertising spending, as it looks to overcome the setback from the ban on its flagship instant noodles.

The company's newly appointed Managing Director, Suresh Narayanan, who officially took over the role on Saturday, said at a media briefing that bringing Maggi back to the market was at the top on his five-point agenda.

When asked if the company will consider introducing an alternative snacks category under the Maggi brand, he said, "If it all makes sense, why not?"

He, however, added it would depend on whether those products are commercially viable.

Reiterating that Nestle "spends maximum amount on R&D" worldwide, he said there are a number of projects currently underway.

The Maggi ban has affected sales of other categories too and the company was looking to drive growth of those categories, he said.

"For me, what is going to be the key focus is on growing some of the other categories as well. We have got presence in dairy, coffee, beverages, chocolates and confectioneries. There are opportunities there," Narayanan said.

He, however, said the company was not diluting the importance of Maggi as it is "is a big part of our movement".

On the impact on other categories, he said, "There has been impact on the rest of the portfolio because it is also sold in similar outlets and in similar geographies. I can say that it has been reasonably uniform across all the categories."

As part of his five point agenda, Narayanan said Nestle India would also focus on enhanced engagement with stakeholders and authorities and communities.

When asked if the company is increasing marketing spend to counter the impact of the Maggi ban on its other brands, he said, "That's part of the thinking to shore up what we can do on some of the other parts of the portfolio. One part of the portfolio is affected but we will be looking as to how we can shore up advertising and support activities on the other brands."