Nestle to launch breakfast cereals in India

Food major Nestlé India on Wednesday said it had received board approval to add breakfast cereals from joint venture (JV) Cereal Partners Worldwide (CPW) to its portfolio, paving the way for its launch in the country. CPW is a 50:50 JV between Nestlé and General Mills, with a network of 17 factories, four R&D centres and 4,600 employees across the world.

Nestlé is among the leading players in breakfast cereals through CPW, competes with the likes of Kellogg’s and PepsiCo (Qaker Oats) globally, which will now be visible in India as well. The Rs 15-billion breakfast cereal market in India has multinationals Kellogg’s and PepsiCo apart from local players such as Marico and Bagrry’s competing with each other.

Industry estimates say that India's breakfast market will cross Rs 25 billion in size by 2020, driven by convenience, health and nutrition. While Nestlé has been a relatively late entrant in the category — it has breakfast cereal brand Ceregrow for Indian kids since 2016 — it is now expected to show significant aggression in its quest for growth.

Nestlé India’s CMD Suresh Narayanan said the breakfast cereal business complemented the firm’s current portfolio, combining expertise in food and health sector. “The consumer need for breakfast choices is only growing and firms need to bring more options to satisfy this need,” he said.