Nestlé India has announced a significant capacity expansion, adding a new Munch production line at its existing Sanand Factory in Gujarat. The expansion represents a planned capital expenditure aimed at meeting future demand for the popular snack. The total investment required for this brownfield expansion is approximately INR 225 crore, with the new capacity of 8,300 tons per annum expected to be fully operational within the Financial Year 2025-26. The expansion will be financed through internal accruals.
Capacity Expansion for Future Demand
Nestlé India Limited has officially disclosed the addition of a new Munch production line at its facility located in Sanand, Gujarat. This development aligns with the company’s broader strategy for capital expenditure, focusing on both greenfield and brownfield projects to scale up overall production capabilities and effectively service anticipated future market demand.
Key Details of the Capacity Addition
The company provided a precise breakdown of the expansion details as required by regulatory guidelines. The new production line is slated to add an approximate capacity of 8,300 tons per annum to Nestlé’s total output for the Munch product line. This expansion is scheduled to be implemented and fully operational within the Financial Year 2025-26.
Investment and Financing
The total estimated investment required for establishing this new line stands at INR 225 crore (approx.). Furthermore, the company has confirmed that the mode of financing for this significant capital outlay will be sourced entirely from internal accruals, indicating strong internal liquidity.
The announcement, dated March 19, 2026, was made by Pramod Kumar Rai, Company Secretary and Compliance Officer, and serves to inform the stock exchanges and stakeholders of the planned operational enhancement at the Sanand facility, which already manufactures Munch alongside the company’s other factories.
Source: BSE
