Back

Next

Why Maggi is India's most valued brand

April 14, 2009

But some challenges remain.

Large retailers like Vishal Retail have decided to launch instant noodles under their own private label. These are priced 25 per cent below Maggi, yet give the retailers a profit margin of up to 30 per cent.

FMCG companies, in contrast, offer retailers margins between 12 per cent and 15 per cent. Hence, they have decided to push their own labels to improve their profit margins.

The same retailers, to be sure, had driven Nestle's growth in the last two years, the IDFC-SSKI report says.

"Nestle's product portfolio is best suited to the Indian consumerism story and rides piggyback the organised retail platform. However, organised retail is seeing a slowdown... In metro markets it is also seeing a decline."

These are issues that Hegde, a veteran of over 20 years at Nestle, and her team need to address in the days to come.

Image: Maggi soups

Also read: Tried booking a Nano?

Back

Next

Powered by