The Core Report

#676 From Zero To 400,000 Tonnes The Epic Comeback Of Maggi Noodles | Govindraj Ethiraj | The Core Report

11 snips
Sep 13, 2025
Suresh Narayanan, former chairman of Nestlé India with over 35 years in consumer products, shares the dramatic comeback of Maggi noodles in India. He discusses how the brand rebuilt trust after a crisis and soared back to 400,000 tonnes in sales. The conversation covers the impact of GST cuts on consumption, shifts in consumer spending due to inflation, and the importance of digital marketing strategies. Narayanan also emphasizes the need for legacy brands to innovate in a competitive market, especially with Gen Z's evolving tastes.
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INSIGHT

Tax Cuts Kick-Start Consumption

  • GST rate cuts plus easing commodity prices can quickly revive consumption in Middle India.
  • Reduced slabs and lower everyday taxes directly stimulate demand and improve FMCG margins.
INSIGHT

Rising Fixed Costs Reshape Budgets

  • High rents and education costs redirected household budgets away from discretionary spending.
  • This recalibration, combined with muted real wage growth, depressed consumption until policy relief arrived.
INSIGHT

Choice, Value And A Big Premium Runway

  • Liberalization and choice changed Indian consumers from captive to value-seeking and indulgence-seeking.
  • Premiumization is growing across rural, semi-urban and urban segments, creating a broad runway for brands.
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