On Thursday, March 19, 2026, Nestlé India Limited announced the operationalization of a new high-speed manufacturing line for its Munch wafer chocolate at its Sanand, Gujarat facility.
The expansion is a strategic move to capitalize on the rapid acceleration of quick-commerce and organized retail, where demand for impulse confectionery has hit record highs in early 2026.
The Sanand Expansion: Technical & Financial Scale
The new production line represents a significant “brownfield” investment within Nestlé’s existing 55-acre Sanand campus, which originally opened in 2021 as a hub for Maggi noodles.
- Capital Investment: ₹225 crore.
- Annual Capacity Boost: Adds 8,300 tons of Munch production per year.
- Strategic Rationale: To satisfy “upcoming market requirements” and eliminate supply bottlenecks as Nestlé pushes deeper into Tier-2 and Tier-3 markets.
- Facility Profile: The Sanand factory is one of Nestlé’s most advanced global sites, featuring high levels of automation and a 60% female workforce, a benchmark for the company’s diversity initiatives.
Financial Performance: Q3 FY26 (Oct–Dec 2025)
The announcement follows a stellar quarterly performance, showing that Nestlé’s aggressive “CAPEX and Ad-Spend” strategy is yielding high margins.
| Metric | Q3 FY26 (Dec 2025) | Growth (YoY) |
| Consolidated Net Profit | ₹998.42 Crore | +45.12% |
| Total Operational Revenue | ₹5,667.04 Crore | +18.56% |
| Domestic Sales | ₹5,402.60 Crore | +18.32% |
| Export Revenue | ₹240.92 Crore | +22.86% |
| EBITDA Margin | 21.3% | — |
Note: The profit surge was aided by “market stabilization following GST advantages” and a massive 42% increase in consumer-centric media and promotional expenditures.
Category Highlights: Beyond Confectionery
While Munch is the focus of this week’s expansion, other legacy brands showed strong momentum in the December quarter:
- Milkmaid: Continued its strong growth trajectory, benefiting from the festive/holiday baking season.
- Nutrition: The “Everyday” brand saw recovery in key North Indian geographies, while toddler milk products reported significant market share gains.
- Sales Channels: E-commerce and Quick-commerce (e.g., Blinkit, Zepto, Swiggy Instamart) were cited as the primary drivers of rapid volume acceleration.
Strategic Rationale: The “CAPEX” Roadmap
This ₹225 crore investment is part of Nestlé India’s broader ₹5,000 crore investment plan (2020–2025/26) aimed at:
- Greenfield Projects: Including the upcoming ₹900 crore factory in Odisha, which is expected to be commissioned by late 2026.
- Portfolio Premiumization: Expanding the reach of KitKat, Milkybar, and Munch through specialized regional variants.
- Export Hub: Utilizing the Sanand and Ponda (Goa) units to service markets in South Asia and the Middle East.
