Nestlé India is expected to top the FMCG (fast moving consumer goods) charts by 2003-4 through an increase in value creation for shareholders, according to a research report by the HongKong Shanghai Banking Corporation called “HSBC’s India 50”.

The report calculates that by fiscal 2004, Nestlé will record a value spread of 8.8% that will mean its performance has overtaken that of sector majors such as Hindustan Lever (HLL), ITC, Britannia, Colgate-Palmolive or Cadbury. Improvement in the sector will see an increase in return on invested capital (ROIC) for all players in the future, but Nestlé is expected to benefit most from the improvement.

HSBC explained that Nestlé’s diversification into areas such as mineral water and dairy have high growth potential and as such in fiscal 2003 the bank expects to see the company post a 14.3% rise in net profit.