INDIA: Nestle denies India stake increase plans
Nestle opened its first R&D facility in India in December last year
Nestle has dismissed reports it is planning to increase its stake in its Indian arm.
The Kit Kat maker is understood to be looking to raise the stake in Nestle India to 75% from its current share of 62.76%, local newspaper The Financial Express claimed, citing three people familiar with the development.
The company is intending to increase the stake for a price not higher than INR6,250 per share, the publication noted. That would value the transaction at INR74bn (US$1.18bn).
However, speaking to just-food today (28 November), a spokesperson for Nestle in Switzerland denied the report. "Currently we have no plans to increase our stake in Nestlé India."
Nestle opened its first R&D facility in India in December last year, its latest move to have more sites looking at innovation located in emerging markets.
The company invested CHF50m (US$52.7m) in the centre, which is located in Manesar close to Nestle's local headquarters in Gurgaon, south-west of the capital New Delhi.
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