Nestle announced that it is adding a new production line at its Sanand plant in Gujarat for its chocolate brand Munch.
The company will expand production by 8,300 tonnes every year. Slated for completion in this financial year (FY26), the project will involve an investment of ₹225 crore through internal accruals.
“This is part of the company’s planned capital expenditure in greenfield and brownfield projects, to increase overall capacities to meet future demand,” the company stated in an exchange filing.
Nestlé India said the Sanand expansion will further bolster supply for Munch, which is currently produced across multiple facilities in the country.
The development comes on the back of strong financial performance by the company. Nestlé India reported a 45% year-on-year increase in consolidated net profit to Rs 998 crore for the December quarter, compared to Rs 688 crore in the same period last year. Revenue from operations rose 19% to Rs 5,667 crore, up from Rs 4,780 crore a year ago.
The company’s EBITDA margin stood at 21.3% of sales during the quarter, reflecting improved operational efficiency.
The capacity addition underscores Nestlé India’s continued investment in scaling production infrastructure as it looks to capitalise on growing consumption in the FMCG sector.
