Nestlé India, one of the country’s leading FMCG giants, has announced the expansion of its KitKat production capacity with a new manufacturing line at its Sanand Factory in Gujarat. This move is part of the company’s broader strategy to scale up production and meet the growing consumer demand for its popular chocolate wafer brand. The expansion is expected to add an annual production capacity of 15,000 tonnes, significantly enhancing Nestlé’s ability to cater to the increasing appetite for KitKat among Indian consumers.
The company has committed an investment of approximately ₹1,100 crore for this expansion, which will be financed entirely through internal accruals. This investment aligns with Nestlé India’s long-term vision of strengthening its manufacturing footprint in the country while maintaining high-quality standards and operational efficiency. The additional capacity is scheduled to be fully operational within FY25, reinforcing Nestlé’s commitment to bolstering its production capabilities to support market growth.
The Sanand Factory, which is already a key manufacturing hub for Nestlé India, will play a crucial role in the company’s expansion plans. In addition to this facility, Nestlé also manufactures KitKat at its Ponda Factory in Goa. By diversifying production across multiple locations, the company ensures a steady supply chain while optimizing logistics to reach consumers across various regions efficiently.
The expansion reflects Nestlé India’s confidence in the country’s confectionery market, which has witnessed significant growth in recent years. With rising disposable incomes, evolving consumer preferences, and a strong shift toward indulgent snacking, the demand for chocolates and wafers has been on an upward trajectory. KitKat, known for its unique crispy wafer and chocolate coating, remains a favorite among Indian consumers, further justifying Nestlé’s decision to enhance production.
As Nestlé India continues to expand its operations, this latest investment not only strengthens its position in the Indian market but also highlights the company’s commitment to local manufacturing. The Sanand facility’s increased capacity will help Nestlé cater to both domestic and export markets, reinforcing its status as a key player in the global confectionery segment. With strategic investments and a focus on innovation, Nestlé India is poised to further solidify its leadership in the competitive chocolate and snack category.
