Nestlé India, one of the country's most iconic FMCG companies, has reaffirmed its belief in the transformative role of startups and regional brands in shaping the future of consumer markets. In a recent interaction with the Press Trust of India (PTI), Chairman and Managing Director of Nestlé India, Mr. Suresh Narayanan, laid emphasis on how emerging brands and startups are not merely competitors but catalysts for innovation and agility within legacy corporations like Nestlé.

According to Mr. Narayanan, the evolving preferences of modern consumers, especially Gen Z and Gen Alpha, necessitate constant adaptation from established brands. “Consumers today prioritise relevance, experience, and authenticity over brand legacy,” he noted, adding that even iconic products such as Maggi noodles must evolve with the times. He believes that these newer players challenge the status quo, pushing established companies to reassess their product portfolios and innovate at a faster pace.

Nestlé India’s accelerator programme is a key platform that enables this synergy. Through this initiative, the company identifies promising startups and works with them closely to develop innovative solutions, test prototypes, and bring viable products to market. This startup-centric approach not only fosters entrepreneurial growth but also helps Nestlé stay agile and in tune with fast-changing consumer expectations.

While innovation remains central, sustainability is another pillar of Nestlé India’s long-term strategy. Mr. Narayanan highlighted the company’s achievements in this space, including an 8-10% reduction in packaging materials and the adoption of environmentally friendly alternatives. Nestlé India has also achieved plastic neutrality for four consecutive years, meaning it recovers and recycles as much plastic as it produces.

This commitment to sustainability extends deep into the company’s supply chain operations. Mr. Narayanan shared that 100% of Nestlé India’s procurement in key categories such as milk, coffee, and spices is now sustainably sourced. This alignment with environmentally responsible practices stems from Nestlé’s global roots in Switzerland, where sustainability is embedded into core business philosophies.

In addition to innovation and sustainability, inclusivity and diversity are critical focus areas for the organisation. At Nestlé’s Sanand factory in Gujarat, women constitute 45% of the workforce, a notable statistic in an industry often dominated by male labour. Across the entire Nestlé India workforce, women account for 25% of employees, reflecting the company's steady push towards gender diversity and equitable work culture.

Mr. Narayanan explained that inclusive growth isn’t just about headcount—it also involves creating an enabling environment for diverse voices, perspectives, and talents to thrive. Leadership training, safe workplaces, and family-friendly HR policies are just some of the measures that support this goal.

From a business standpoint, Nestlé India continues to be a high-performing market for its global parent company. With revenue surpassing ₹20,000 crore (approximately US$ 2.28 billion), India remains one of Nestlé’s top markets, not just in terms of volume but also innovation potential. Mr. Narayanan believes that Nestlé India’s commitment to responsible growth, combined with its openness to collaborating with emerging brands, sets it apart in a crowded and competitive marketplace.

He pointed out that regional brands and startups often cater to niche or hyperlocal demands, something larger firms might overlook. Rather than viewing them as threats, Nestlé leverages partnerships with such entities to enhance its product range and connect better with diverse consumer segments across India. This adaptability is crucial in a country with as many cultural and regional variations as India.

The CMD also highlighted that consumer loyalty today is fluid. Products that were once household staples may quickly lose relevance if they don’t adapt to new health standards, flavour preferences, or value perceptions. Nestlé’s strategy under Mr. Narayanan thus combines brand heritage with constant reinvention, and he sees startups as drivers of this reinvention cycle.

Nestlé India’s collaboration with startups has not only led to product co-creation but also improvements in distribution, digital marketing, and consumer data analytics. These startups bring agility, innovation, and technological know-how that complement Nestlé’s scale, experience, and brand equity.

In conclusion, Mr. Suresh Narayanan’s vision for Nestlé India is built on the interplay between tradition and transformation. By embracing the energy of startups, acknowledging the value of regional brands, and staying committed to sustainability and diversity, Nestlé India aims to build a future-ready, inclusive, and responsible business. As Indian consumers continue to evolve, so too will the company’s efforts to remain relevant, innovative, and deeply rooted in societal values.

The message is clear: for large companies to thrive in today’s dynamic landscape, they must not only compete but also collaborate—especially with the very startups and regional challengers that are reshaping the contours of the Indian consumer market.

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