Nestlé India, a major player in the FMCG sector, has assured stakeholders that the suspension of Switzerland's MFN status will not impact its operations.
Nestlé India has been operating in the Indian market for over 112 years and is one of Nestlé SA's top ten markets globally. The company plans to invest between Rs 6,000 and Rs 6,500 crore from 2020 to 2025 to enhance its manufacturing capabilities and expand its business in India. It currently operates nine factories in India, with a tenth under construction in Odisha.
In the financial year 2023-24, Nestlé India reported a revenue of Rs 24,393.9 crore, demonstrating its continued growth in the Indian market. The company's commitment to compliance with tax regulations and strategic investments highlight its dedication to maintaining a strong presence in India despite the recent changes in the MFN status.
While the suspension of the MFN clause raises concerns about increased tax liabilities for Indian companies in Switzerland, Nestlé India assures that it has consistently complied with Swiss tax regulations by deducting the required 10% withholding tax. This proactive compliance is expected to mitigate any negative effects of the policy shift. Nestlé India's long-standing presence in the Indian market and commitment to regulatory compliance position it as a resilient entity capable of navigating international taxation complexities.