Fast-moving consumer goods major Nestlé India flagged fluctuations in input costs amid geopolitical uncertainty, but said it would continue to strive for volume-led growth in the new financial year, with a focus on expanding consumption, improving penetration and increasing efficiency, news agency PTI reported.The maker of Maggi noodles, Nescafe and KitKat remains cautious as global uncertainty, monsoon fears and commodity price fluctuations continue to cloud the outlook, said Manish Tiwari, Chairman and Managing Director.“Times are volatile. It is difficult for anyone to predict what will happen even after two months,” Tiwari told PTI in an interaction.He did not indicate any immediate price increase, but said geopolitical tensions were creating cost pressures through higher raw material prices and higher packaging costs associated with crude oil.Most FMCG companies have already announced a fresh round of price hikes of around 3 to 5 per cent in the March quarter due to raw material costs rising by 15 to 20 per cent, higher crude oil prices affecting packaging and a weaker rupee.On Thursday, Hindustan Unilever CEO and Managing Director Priya Nair said the company will implement “measured price increases” to manage rising input costs.Tiwari said Nestlé India produces more than 97 per cent of its materials locally and manufactures the bulk of its products in India.
However, he warned that local sourcing may not fully protect the company if inflationary pressures worsen.“However, this will not insulate us from further inflation,” he added, because that will depend on how the political situation in the Middle East changes.“So, this is something we have to be prepared for. So, this is kind of a yellow flag in the future that we see,” he added.Tiwari said the company will continue to optimize costs internally through efficiency measures.Despite the uncertain backdrop, Nestlé India saw “right momentum” in FY26, largely driven by volume growth across businesses, he said.The company also sharply increased its advertising investments in the second half of the financial year to support its core brands.When asked about the outlook for FY27, Tiwari said: “We will continue to look at volume, and let the penetration grow.”According to him, Nestlé’s strategy of investing behind core brands while maintaining disciplined cost management and use of technology is yielding results.“Going forward, we will continue to adhere to our strategy of driving volume-led growth, driven by the investment behind this brand, and we will remain highly disciplined in our execution,” he said.Nestle India is also open to acquisitions if suitable opportunities arise.“This is a very comprehensive portfolio to take our business into the next four or five years. At the same time, there is a team that continues to look for new spaces, perhaps to see acquisitions,” he said.The company is also enhancing its rural expansion under its ‘Rurban’ strategy, increasing distribution spokes from 25,000 to 45,000.“I think the rural market, i.e. rural business, will grow much faster than overall sales,” Tiwari said.Nestlé India, which opens its 10th factory in Odisha, will continue to invest to support volume-led growth.“So we will continue to invest. We see this demand in the country,” he said.Nestlé India’s total revenue in FY26 was Rs 23,194.95 crore, up 14.46 per cent year-on-year.Q4 profits rose to Rs 1,110.9 crore, while revenue from product sale stood at Rs 6,723.75 crore.