Suresh Narayanan is Chairman and Managing Director of Nestlé India, and is scheduled to retire on July 31, and has been at the helm of the company, approaching nearly a decade. Narayanan spoke to Tnie about his incredible journey, key challenges and milestones during his tenure, and his vision for the future of Nesraind over the next decade. excerpt:
What were the top three challenges you faced in the last 10 years of travel at the helm?
I came during the storm – that was a major challenge. Then came Covid, which disrupts the supply chain and raises serious concerns about employee safety. The third was the recent sugar controversy.
How can I regain consumer trust after the Maggie and Sugar controversy?
Maggie is a deeply loved brand. The allegations of high lead content were shocking and struck by the centre of food quality and safety. I contacted regulators, authorities and the media to explain our stance and reassure the public about our commitment to safety. We went to Bombay High Court. This allows for retesting and restarting. The brand has completely left the shelf from market leaders and then returned to leadership at record time.
Sugar controversy It alleges that there are various standards for market development and development, resulting from allegations by Swiss NGOs. This has made it clear that this is not true. With refined sugar added or unsleek products on sale worldwide, all products meet and exceed FSSAI standards. The allegations temporarily damaged the brand, but we were already working on unsleashed sugar products.
How do you deal with the rise of influencers criticizing packaged food?
There are two phenomena. It's the innocence of ignorance and fake news. Not everyone is a nutrition expert, and that's understandable. But fake news is intentional and dangerous. There is a lot of half the understanding of nutrition, and if left unchecked, this can cause serious harm to the industry. Religion and politics aren't the only ones who suffer from fake news. Nutrition is probably close to a third in terms of online misinformation. The solution to ignorance is to emphasize the truth. It's not helpful to slander or chase influencers.
Did these events encourage you to rethink your product portfolio?
We are constantly working to improve the nutritional profile of our products. Over the past five to six years, we have significantly reduced salt, sugar and fat throughout our portfolio. The challenge is to balance taste and nutrition. You don't want healthy, tasteless products.
Looking back, what are your biggest achievements under your leadership?
From a financial performance perspective, ten years later, sales increased by 2.5 times, net profits increased by 6 times, market capitalization by 4 times, and shareholders increased by 7 times. Roe rose from 19% to 89%. They also split the stock and declared a 1:1 bonus issue.
Diversity and inclusion are another area that I am proud of. When I joined, only 10% of the leadership was women. Today it's 20%. A quarter of the frontline sales force is women.
The third important outcome is sustainability. Our coffee and spices are sourced sustainably and we pay extra to farmers who adopt sustainable practices. We have reduced water usage by 50% and achieved plastic neutrality.
What are your views on the impact of AI on employment in the FMCG sector?
Technology must be a tool to enhance progress and prosperity. We are selective in using AI, developing use cases through planning, logistics, automation and manufacturing excellence.
These use cases are gradually unfolded when there is a direct impact on business growth, productivity, or costs. There is no random approach to automation. Instead, we will follow the roadmap of forecasting and supply chain models, particularly those.
Do you think there is a need to regulate the adoption of AI?
I think the regulations should be based on use cases. A flimsy or thoughtful application of AI can lead to unnecessary unemployment. To prevent such outcomes, a clear protocol is required.
How do you think Trump's tariff threat will arise due to the Indian economy and the FMCG sector?
India's strength lies in domestic consumption, accounting for two-thirds of GDP. Consumption is back as inflation mitigation, infrastructure expansion and tax mitigation have been announced. India is one of the most economically robust regions, especially given its global volatility. With 1.4 billion consumers, it's not actually parallel.
I recently added pet food. What more can we expect from our Nestlé portfolio?
Our four core categories (prepared dishes, confectionery, dairy and nutrition, chocolate) have strong growth potential. Pet care has been added to the basket. The possibility is immeasurable as there are 25-30 million pets in India, growing at 10% per year and only 5% using complementary feeding. The premium coffee segment with Nespresso is growing rapidly, and Nestle Health Science is another new addition. Dr. Reddy's JV focuses on health and wellness products. These are powerful pillars and seeds for future growth.
Will Nestlé try the Coke business?
No. Nestlé focuses on nutrition-based, differentiated products that leverage science and technology. You will not meet us in Atta Chawal's business or in Coke.
Do you have any regrets?
One of my regrets is that I have not made any acquisitions while I was in my tenure. We joined a joint venture with Dr. Lady, but never fully acquired it. That said, if there is a good fit in terms of business, cultural and commercial collaboration with Nestlé, the company will certainly be interested.
I developed a strong local team and developed local talent, but I wish I had given them more opportunities for leadership. That feeling is always there. We could have done more to leverage local leadership.
