ICICI Securities: Nestle India’s Infant Food Business Will Likely Face Growth Headwinds In CY 2021 
Tins of newly-manufactured NAN baby food sit on display at Nestle’s production unit for probiotic infant formulas in Konolfingen, Switzerland. (Photographer Gianluca Colla/Bloomberg)

ICICI Securities: Nestle India’s Infant Food Business Will Likely Face Growth Headwinds In CY 2021 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Nestle India Ltd.’s infant nutrition business (approximately 30% of revenues and approximately 40% of profits) will likely face growth headwinds in CY2021 due to consumers (now) delaying plans of having babies due to fear of visiting hospitals.

Given the premium pricing of infant nutrition products, the consuming households are mostly the upper-middle class/middle class, in our view.

We have drawn conclusions from:

  1. our primary research with pharmaceutical companies and
  2. secondary sales data (market research) from All Indian Origin Chemists and Distributors-Advanced Working, Action and Correction System (AIOCD-AWACS)

Though we are believers in Nestle’s long-term story, our current neutral stance is intact (given that only a part of its portfolio (Maggi and (somewhat) Coffee) would benefit from increased in-home consumption).

Click on the attachment to read the full report:

ICICI Securities Nestle Beneath the surface.pdf


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