Cadbury's British pedigree and strong presence in India, both historically and financially, signify a threat to Nestle, but the Swiss conglomerate apparently has a plan in place to ameliorate that empirical significance.
The Times is reporting that Nestle has announced plans to create and R&D facility on India where it will experiment with local flavors towards the goal of creating products that will establish their already strong sales position in one of the globe's most populous nations.
According to the The Times, Nestle saw a 20% rise in profits throughout their Indian market last year and openly estimates that, over the next 10 years, 45% of their sales will be made in "emerging markets" like India.
Interestingly, Nestle overall is reporting an 18% rise in earnings (EBIT) from last year in the half-yearly earnings report that they released this August.
While it woud be a jump in reasoning to assume that India alone created the almost $1.2 billion difference in earnings for Nestle from last year to this one, it is not so hard to posit that Kraft's purchase of Cadbury has spurred a sudden need for Nestle to reinvest in a market that has provided sales figures of such numeric significance.
We can only hope that this bold R&D move by Nestle will provide American shoppers with a mass-marketed, microwaveable Chicken Tikka Masala, basmati rice and Hot chocolate meal available at supermarkets in the near future.
Or do we?
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