‘Nestle India Could Have Lost 100 cr in Sales Last Qtr’
Chairman says overall demand has taken a hit
New Delhi: Nestle India could have lost ₹ 100 crore in sales in the last quarter of 2016 due to demonetisation, chairman Suresh Narayanan said.
“Last quarter, we could have lost a billion (rupees) of sales... Probably, we will have to wait two quarters at least to get a full idea of what it (the impact) is (on the FMCG industry) —whether it is long lasting or it is just a blip,” he said.
Narayanan said the impact of the note ban is not so much on the FMCG industry but on the overall demand, which has been affected due to the shutting down of industries, job losses and other factors. However, there were positive things such as good monsoon and the seventh pay commission, which could help in the revival. The company on Monday launched energy drink Milo in a ready to drink format with less sugar. The drink, which was earlier available in powder format, was scrapped in India sometime back. Narayanan said the market has since moved significantly towards liquid milk-based products.