Nestlé India spends ₹9.7 billion on ads in FY25: Report

Nestlé India Limited, in its Annual Report for FY 2024–25, reported an expenditure of ₹9,658.6 million on advertising and sales promotion. This compares to ₹12,876.8 million spent during the previous 15-month financial period that ended in March 2024. The company also spent ₹665.4 million on market research for the year, up slightly from ₹645.0 million in the prior period.

The company highlighted its growing digital sales footprint, with e-commerce contributing 8.6% to total sales. Within this channel, quick commerce (Q-commerce) has emerged as a key driver, accounting for approximately 45% of Nestlé India’s e-commerce revenue. The report claims Q-commerce campaigns, particularly for new product launches like the NESCAFÉ Ready-to-Drink cold coffee range, were well received by consumers.

Nestlé India’s RUrban strategy, targeting rural and semi-urban markets, remains central to its growth agenda. Since 2015, the company has launched over 150 new products, which now contribute 7% to its overall sales. Its rural footprint includes a presence in approximately 209,050 villages and over 28,240 distribution touchpoints. According to the report, Nestlé’s brands currently reach two out of every three households in India.

The company continues to invest in consumer engagement through platforms like "Ask Nestlé", which offers personalised nutrition and product information. Nestlé India is also leveraging Artificial Intelligence and Machine Learning (AI/ML) to optimise its marketing spends. On the sales front, the company scaled up deployment of tools like NesMitra, a self-ordering app for retailers, and RACE (Real-time Activity Execution), a platform for managing trade campaigns.

Suresh Narayanan, Chairman and Managing Director, Nestlé, reflected on the company’s accelerated pace of innovation and evolving marketing efforts. He noted, “The company’s pace of innovation is now four times faster than a decade ago,” and emphasised the importance of “understanding the evolving pulse of the consumer.”

Nestlé’s marketing strategy emphasised strengthening its reach through rural market penetration and technology-led distribution. Digital platforms like NesMitra and RACE helped streamline trade operations, while e-commerce, especially Q-commerce, served as a critical growth engine. The 150+ new products launched since 2015 are now integral to Nestlé’s revenue mix.