Nestle India has expanded its manufacturing footprint with the addition of a new Munch production line at its Sanand factory in Gujarat, scaling up capacities in line with rising consumer demand.
The expansion entails an investment of close to ₹225 crore and is expected to add 8,300 tonnes per annum of production capacity. The move forms part of the company’s broader capital expenditure strategy spanning both greenfield and brownfield projects across India.
Expansion Aligned With Growth Momentum
The capacity addition comes at a time when Nestle India is witnessing strong growth across categories. The company reported total sales of ₹5,643.5 crore in Q3 FY26, marking an 18.5% overall growth, with domestic sales rising by 18.3%.
Profitability also remained robust, with:EBITDA margin at 21.3% of sales, profit after tax at ₹1,018.1 crore. The company’s earnings per share (EPS) stood at ₹5.28
This performance reflects sustained demand across its portfolio, including confectionery products like Munch, which continue to enjoy strong brand recall in India.
Sanand facility: A Key Node In Manufacturing Network
The Sanand plant has emerged as a critical hub in Nestle India’s manufacturing ecosystem. The addition of the new Munch line further strengthens its ability to serve western and northern markets efficiently.
While Munch is produced at multiple facilities, the Sanand expansion underscores the company’s focus on decentralised manufacturing to improve supply chain agility and meet regional demand effectively.
Consumption Trends Drive Capacity Push
The expansion is also backed by evolving consumption patterns. In quick commerce, the company has been witnessing accelerated momentum, driven by rising demand for instant delivery and impulse purchases. On the e-commerce platforms, Nestle has been benefiting from targeted demand generation campaigns. Significantly, the organised retail channels are increasingly becoming critical growth drivers for FMCG companies, prompting capacity enhancements to avoid supply constraints.