Nestlé India, one of the country’s leading FMCG giants, has reported a 3.8% decline in its permanent workforce for the financial year 2024-25 (FY25).
Despite the reduction in employee count, the company has significantly increased its capital expenditure (capex), focusing on expanding operational capabilities and strengthening its market presence.
The workforce dip comes at a time when Nestlé India is undergoing a leadership transition, with Manish Tiwary appointed as the new Managing Director, succeeding Suresh Narayanan.
The company’s strategic shift raises questions about its workforce optimization efforts and future growth plans.
Nestlé Workforce Reduction and Salary Adjustments
Nestlé India’s permanent employee count fell from 8,736 in FY24 to 8,419 in FY25, marking a 3.8% decrease.
Despite this, the company increased the median remuneration of employees by 4.9%.
The salary adjustments were as follows:
- Non-managerial employees saw a 5.2% increase in their salaries.
- Managerial personnel received a 3.5% hike in their remuneration.
Nestlé India clarified that the salary increments align with industry standards, ensuring competitive compensation despite workforce optimization.
Capital Expenditure Surge and Business Strategy
Nestlé India has significantly ramped up its capital expenditure, increasing it from 1.8% of sales in 2015 to 10% of sales in FY25.
The company’s total sales crossed ₹20,000 crore, reinforcing its strong market position.
Outgoing Chairman Suresh Narayanan emphasized that the capex growth reflects Nestlé India’s commitment to long-term expansion, including:
- Investments in new capabilities and infrastructure.
- Strengthening supply chain efficiency.
- Enhancing product innovation and market reach.
Despite the workforce reduction, Nestlé India remains focused on business growth and operational enhancements.
Leadership Transition: Manish Tiwary Takes Over
Nestlé India has announced a succession plan, appointing Manish Tiwary as Managing Director for a five-year term, effective August 1, 2025.
His leadership transition includes:
- Managing Director (Designate) role from February 1, 2025.
- Key Managerial Personnel designation from April 24, 2025.
Manish’s remuneration package includes:
- ₹29.94 million for two months of service in FY25.
- A lump sum payout of ₹151.96 million, compensating for long-term incentives lost from his previous employment.
Outgoing CMD Suresh Narayanan received ₹23.47 crore in total remuneration for FY25, marking the end of his tenure.
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