The Odisha facility, initially planned to manufacture mango-based products, including mango-flavoured noodles, is part of Nestlé Indias manufacturing expansion strategy.Nestlé India is set to inaugurate its 10th manufacturing unit near Khurda in Odisha, with the company positioning the facility as part of a broader shift towards integrating sustainability into manufacturing and investment decisions.
The Odisha facility, initially planned to manufacture mango-based products, including mango-flavoured noodles, is part of Nestlé India’s manufacturing expansion strategy. Additional product lines may be introduced over time, the company said.
“We have nine factories here. The first one came up in 1961, and since then we’ve added eight more. And then there’s a planned 10th one in Odisha. Lines are coming up, factories are coming up, and the 10th is on the planning boards and under construction. But what we’re trying to say is we do all the growth with a lot more responsibility,” Kunwar Himmat Singh, Director – Corporate Affairs & ESG, Nestlé South Asia Region, told ET Manufacturing.
According to the firm, each new investment in manufacturing operations is anticipated to have greater efficiency in the context of energy use, lower plastic consumption, better management of water resources, and more automation, thus incorporating sustainability in its expansion process.
Sustainability is integral and not a standalone functionWhile most firms allocate a separate budget for sustainability initiatives, Nestlé is quick to point out that it does not consider sustainability as an isolated cost centre. In fact, sustainability factors find their way into most investment decisions made within the company, whether in raw material procurement, product design, factory equipment installation, and packaging.
“We don’t treat sustainability as a separate vertical and necessarily commit a number to that. While there are budgets, sustainability is a commitment that cuts across the value chain,” Singh said.
Every capital expenditure proposal, whether for a new machine, production line or product formulation, is evaluated through a sustainability lens.
“Any new machine that is bought, any new investment in capex that goes into any new product design, any new product development that we do, any new recipe change we would do, always has a sustainability element embedded,” he said.
Rather than measuring commitment by the amount spent, the company prefers to measure progress through environmental outcomes.
Climate targets take precedence For Nestlé, its climate roadmap serves as an improved measure of its sustainability strategy than just a mere investment figure.Having made its initial baseline measurement in 2018, Nestlé now has its sights set on being carbon neutral, with its interim goals to cut down emissions by 20 per cent in 2025 and 50 per cent in 2030.
Singh asserts that Nestlé has already surpassed its 2025 target and is still on course towards reaching its 2030 target.
“The proof of the pudding is in those numbers, not really how much you spend,” he added. “The objective of 2025 was well exceeded. We are well on our path to do our 2030 mandate of 50 per cent.”
Dairy remains the biggest sustainability challengeWhile the sustainability initiatives of Nestlé cover manufacturing, logistics, packaging, and sourcing, agriculture still is the main focus area for the company, especially dairy products.According to Singh, the contribution of dairy accounts for more than 70% of the sustainability footprint of the company, which makes it the priority area for future actions.
“Most of our investments or initiatives would be on the agricultural side of it. In our case, dairy is a big component,” he said.
The company is also expanding programmes covering coffee and spices through initiatives such as the Nescafé Plan and sustainable spice sourcing.
Rather than concentrating on one area alone, Nestlé says it follows what Singh described as an “‘and’ approach”, working simultaneously across procurement, regenerative agriculture, manufacturing, packaging and logistics while prioritising areas capable of delivering the greatest environmental impact.
Technology central to climate-resilient agricultureFor Nestle, the use of digital technologies, AI, and satellite monitoring will be key in assisting farmers in adjusting to climate change.
Through digital and advanced technology, Nestlé monitors the use of water, application of fertiliser, condition of soil and weather changes in agricultural practices.
“Technology has been a great asset in being able to plan ahead and being more future-ready,” Singh said. He believes that the use of AI-based analytics and digital dashboards is becoming increasingly important in monitoring sustainability metrics in the agriculture value chain.
Currently, Nestle sources 92 per cent of its raw material from within the country and partners with about 80,000 dairy farmers, 5,000 coffee farmers under the Nescafé Plan and approximately 2,500 spice farmers in eight states.
As per Singh, making farmers economically resilient and technologically strong is crucial for the sustainable growth of the company. “As it’s in our selfish interest, we need the whole ecosystem to improve,” he said.
Packaging shifts from compliance to innovationPackaging too has become an important pillar of Nestlé’s sustainability initiative.
Even though Nestlé claims that it has been able to achieve plastic neutrality and lessen its reliance on virgin plastic, it is putting in more efforts in terms of using recyclable materials and re-engineering of packaging along with investment in waste collection infrastructure.
In addition to this, Nestlé is trying out alternate materials through inventions like sustainable straws and edible wheat flour forks.
However, according to Singh, India’s plastic waste problem cannot be solved just by companies alone. “Nestlé is a drop in the ocean. This requires public, private, consumer, the entire value chain, to wake up to reality,” he said.
Packaging varies across product categories At Nestlé, packaging innovation is unlikely to follow a one-size-fits-all model, with solutions expected to vary across product categories as the company works towards more recyclable, reusable or compostable packaging.
Singh said the company’s Maggi Cuppa range, which has moved away from conventional plastic packaging to thermofoam cups, is one example of this approach. However, he cautioned that a solution that works for one product may not suit another. Experiments such as the edible fork have also pushed Nestlé to explore what more can be done.
As Singh put it, “The bigger picture is making sustainability relevant for consumers along with factors like taste, nutrition, quality, and pricing.” As young people get more conscious about the production process and disposal of product packaging, the willingness to pay a little extra is not clear yet. For Nestlé, the task at hand is to convert this consciousness into consumer involvement through innovation.
India becoming a strategic manufacturing and R&D hubWhile increasing production capacity, Nestlé claims that India is playing a bigger part within their global manufacturing and innovation network.
The Nestlé R&D centre at Manesar is making more contributions to global product development, sustainable sourcing, cleaner ingredients, innovative packaging, and formulations.
Additionally, exports are playing an increasingly important role, aided by India’s manufacturing capabilities, trained workforce, and low-cost operations.
Singh noted that more than 10 per cent of the coffee used in Nestlé’s premium Nespresso business is now sourced from India.
“We are extremely proud of ‘Made in India’. Our first responsibility is to the Indian consumer, but India will continue increasing its footprint in the export market,” he said.
Sustainability becoming everyone’s responsibilityInternally, Nestle has shifted from the concept of sustainability being the sole responsibility of an ESG team within the firm.
The company has created a network of sustainability champions, which comprises over 100 champions coming from various departments like procurement, manufacturing, logistics, sales, among others.
The cross-departmental concept is anticipated to gain more relevance because of the technological changes that have made monitoring and data-driven decisions possible.
According to Singh, technology will strengthen ESG governance, but accountability must remain distributed across the organisation. “You cannot have one person or two people handling this thing. You need to embed sustainability champions across functions,” he said.
Responsible growth becomes the measure of successLooking ahead, Nestlé says future success will be measured not only by revenue growth, profitability or market share, but also by the manner in which those results are achieved.
“The picture of success will be defined not just by top-line growth or profitability, but also by how we got them,” Singh said.
The company hopes consumers will increasingly associate Nestlé products not only with taste, nutrition and quality, but also with responsible manufacturing and sustainable sourcing.
“The picture of success will be when the consumer says the product in my hand is not only the tastiest and safest, but also the most responsibly made product,” he said.
Published On Aug 15, 2026 at 04:40 PM IST
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