India is one of the fastest growing markets for the Swiss global food & beverage major Nestle, where its local subsidiary has delivered a double-digit growth.

The company, which owns popular brands such as Maggi, Kit Kat and Nescafe, is leveraging existing competencies and capabilities and investing in new areas of opportunity to deliver long-term value, according to Nestle India's latest annual report.

Now, India has become the largest Nestle market globally for Maggi and the second-largest for chocolate wafer brand Kit Kat.

"Penetration, premiumisation and innovation, combined with disciplined resource allocation, have been key in driving business, making your company one of the fastest growing markets for Nestle globally," said the latest annual report.

The sales of innovation products have been more than six per cent in 2023 for Nestle India. It was at 3 per cent in 2018.

Besides the domestic market, Nestle's export business delivered good growth, the annual report said.

All of its key brands and product groups recorded consistent growth, despite escalating food inflation and volatile commodity prices, primarily in coffee and cocoa, it added.

Nestle, which is setting up its tenth Indian factory in Odisha, reaffirmed the significance of India as a market.

"Strengthening this further, your company is poised to invest approximately Rs 7,500 crore between 2020 and 2025 to develop new capabilities and expand existing ones with a sharp focus on sustained growth and innovation," its Chairman & Managing Director Suresh Narayanan said while addressing shareholders.

Nestle India recently announced to continue to pay royalty to its parent company at the existing rate of 4.5 per cent of net sales after a proposal to hike it was rejected by the shareholders.

The company's board, at its meeting, approved continuation of payment of general licence fees (royalty) at the existing rate of 4.5 per cent to Société des Produits Nestle SA (licensor) and recommended to the members of the company for their approval, Nestle India said in a statement.

In April, Nestle India's board had approved increasing royalty payment to its parent company by 0.15 per cent per year for the next five years, thereby enhancing it to 5.25 per cent of net sales.

In its annual report, Nestle India said "the general licence fees (royalty) rate paid by the company to the licensor is comparatively lower" in comparison to other multinational corporations (MNCs) in India.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.