Nestle India agreed to pay royalties to the parent company!

The royalty fee will be capped at 5.25 percent of the sales revenue generated by Nestle India. This payment will be spread out over a period of five years, with a slight annual increase of 0.15 percent over the previous year’s fee, starting at 4.25 percent. The new royalty agreement will come into effect on July 1, 2024.

Source: https://www.retail4growth.com/public/uploads/editor/2020-07-29/1595999435.png

Recently, the National Consumer Dispute Redressal Commission ruled in favor of Nestle India, dismissing the government’s 2015 plea against the sale of Maggi noodles.

Maggi noodles were temporarily banned in June 2015 due to allegations of containing chemicals above permissible limits. The company had to recall and dispose of 38,000 tonnes of Maggi noodles from various retail outlets. The ban was lifted in November 2015.

Over the past six months, the company’s shares have seen a 10 percent increase, and over the last year, they have risen by 28 percent.

In Q4CY23, the FMCG company’s net profit grew by 4.4 percent year-on-year to Rs 655.61 crore, while its revenue for the same period increased by 8 percent YoY to Rs 4,600.42 crore.

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