Nestlé Lanka marks 120 years with Rs. 9bn expansion plan

• Announces plan to expand manufacturing, scale coconut milk powder exports
• Acknowledges Sri Lanka occupies a strategically important position within Nestlé’s South Asia region as on a per-capita basis, revenue from the island nation is about eight times higher than in India or Bangladesh

By Shabiya Ali Ahlam

Bernie Stefan Pic by Waruna Wanniarachchi

Nestlé Lanka plans to invest around Rs. 9 billion over the next few years to further develop its manufacturing operations in Sri Lanka, as the multinational marks 120 years in the country, its Chairman and Managing Director Bernie Stefan said.

The investment would primarily focus on expanding production capacity for coconut milk powder, currently the company’s largest export product.

“We will make investments of roughly Rs. 9 billion over the next four years to further develop our manufacturing site,” Stefan said while speaking at a media briefing yesterday held to commemorate the milestone. He noted that the expansion would support rising global demand for coconut-based products.

According to Stefan, Sri Lanka’s high-quality coconut milk powder positions the country well to serve international markets, while reinforcing its role as a key export hub for Nestlé within the region.

The company’s continued investment comes even as Sri Lanka navigated a challenging economic period in recent years, with Nestlé maintaining a long-term commitment to the market.

“Even during the very challenging economic period over the past few years, we did not stop investing. That reflects our confidence in Sri Lanka and the long-term potential of this market,” he said.

Meanwhile, speaking to Mirror Business on the sidelines of the event, Stefan said Sri Lanka occupies a strategically important position within Nestlé’s South Asia region, which comprises Sri Lanka, India and Bangladesh.

“Sri Lanka is a very important market within our South Asia region. Among these three countries (Sri Lanka, India and Bangladesh), Sri Lanka is our oldest market. Nestlé entered Sri Lanka before India, and Bangladesh came much later.”

He noted that Sri Lanka remains one of the company’s most mature consumer markets in the region.

“On a per-capita basis, revenue from Sri Lanka is about eight times higher than in India or Bangladesh. Because of this maturity, we see strong opportunities here to further drive innovation and premiumisation across our product portfolio,” shared Nestlé’s Chief for Sri Lanka.

He stressed Nestlé Lanka is also continuing to evolve its local product portfolio in response to changing consumer preferences.

“We continuously review and evolve our product portfolio. When you have strong, established brands, launching something new can sometimes take longer, but we continue to innovate,” Stefan said.

Among the recent launches highlighted was Maggi Papara Blast, a spicier noodle variant developed to appeal to younger consumers seeking bolder flavours.

The company has also introduced a smaller pouch format within its Milkmaid range, allowing consumers to use the product more conveniently as a topping in addition to its traditional use as a baking ingredient.

While the company’s cumulative investment in Sri Lanka over its 120-year history is difficult to quantify, Stefan noted that Nestlé has remained a major contributor to the economy.

“Over the last three years alone, we have paid more than Rs. 35 billion to the government in taxes,” he said, adding that the company’s investments have been significant, particularly with the establishment and expansion of its manufacturing operations.

Furthermore, the milestone celebrations also featured a message from Nestlé’s global leadership, underscoring Sri Lanka’s importance within the multinational’s worldwide operations.

In a message to the Sri Lankan team, Nestlé CEO Philippe Laffitte said the company’s local presence had played a key role in supporting communities and contributing to sustainable progress.

“For more than a century, Nestlé Lanka has been part of the nation’s fabric, nourishing families, supporting communities and contributing to sustainable progress,” he said.

“Our market-leading brands and strong household reach reflect the passion of our teams, the loyalty of our consumers and the strength of local collaborations. I look forward to seeing what lies ahead as you continue to innovate and make a positive impact.”